Yellow Metal Dips After Mostly Solid US Jobs Data

Bullions tips - Gold futures ended lower in the domestic market on Friday as investors and speculators exited positions in the precious metal as mostly upbeat US jobs data for January bolstered the case for the US Federal Reserve to raise interest rates at some point this year following a maiden lift-off in borrowing costs in almost a decade in December, dimming the lure for the bullion as a store of value.

American employers continued to bolster hiring at a solid pace with payrolls rising by 151,000 in January, while the jobless rate skid to the lowest level since February 2008 to 4.9 per cent, and wages climbed more than estimated by 0.5 per cent, a sign that the labour market recovery in the world’s biggest economy remains on a solid footing, keeping the prospects of a Fed rate hike alive this year.
 

Gold ended flat in the overseas market on Friday as a stronger dollar curbed the lure for the bullion as an alternative asset. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand.
 

Gold may extend losses today on renewed prospects of a Fed 2016 rate hike.
 

At the MCX, Gold futures for February 2016 contract closed at Rs 27,253 per 10 gram, down by 0.38 per cent after opening at Rs 27,420, against the previous closing price of Rs 27,358. It touched the intra-day low of Rs 27,400.