Gold Updates - “ Yellow metal remains in higher gear “

Bullions Tips - Gold futures rallied in the domestic market on Thursday as investors and speculators booked fresh positions in the precious metal as a weaker dollar bolstered the appeal of Gold as an alternative asset.Weaker greenback makes the yellow metal cheaper for those holding other currencies, thus bolstering demand.

Further, speculation that the US Federal Reserve may refrain from further interest rate hikes in 2016 following a maiden lift-off in borrowing costs for the first time in almost a decade, in December 2015, bolstered Gold’s appeal as a store of value.
 

Federal Reserve New York President William C. Dudley signaled that tighter financial conditions may prompt the world’s top central bank to push back its next interest rate hike.
 

A rise in US jobless claims last week and the biggest drop in factory orders in a year in December 2015 signaled a fast faltering recovery in the world’s biggest economy, bolstering the case for the Fed to delay further monetary tightening.
 

Gold may trade on a cautious note today ahead of US January jobs data which may show that the country’s economy added 190,000 jobs, down from December’s 292,000 addition.
 

At the MCX, Gold futures for February 2016 contract closed at Rs 27,358 per 10 gram, up by 0.59 per cent after opening at Rs 27,200, against the previous closing price of Rs 27,198. It touched the intra-day high of Rs 27,434.