Gold Updates - Gold futures tumbled by nearly 2 per cent in the domestic market on Monday tracking a bearish trend in the overseas market as a an impressive rebound in crude oil prices helped ease concerns over a slowing global economic recovery, rekindling risk taking appetite, and curbing a flight to safe haven avenues such as the yellow metal.
A surge in equities and a rally in the US dollar dimmed the lure for the bullion as an alternative asset. Wall Street surged on Monday with benchmark S&P 500 rising to the highest level in six weeks, rallying by over 1.4 per cent driven by a jump in energy stocks.
Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand for Gold. Traders resorted to profit booking at existing levels, in Gold, amidst a sharp rally in recent sessions.
Gold may trade on a cautious today ahead of key US economic data including consumer confidence and existing home sales which may offer further cues over the health of the world’s biggest economy.
At the MCX, Gold futures for April 2016 contract closed at Rs 28,966 per 10 gram, down by 1.86 per cent after opening at Rs 29,101, against the previous closing price of Rs 29,515. It touched the intra-day low of Rs 28,801.
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