Gold Ends in the Red on Fed caution in the Domestic Market

Gold futures ended lower in the domestic market on Monday as investors remained jittery over the trajectory for US interest rates.Federal Reserve Bank of San Francisco President John Williams said that global economy was having a significant impact on measures that Fed officials gauge to determine interest rates.

At the same time, an upward revision in US fourth quarter growth to 1.4 per cent annualized pace from 1 per cent earlier signaled more optimism over the strength in the world’s biggest economy, bolstering the case for further interest rate tightening in the coming months.

Traders stuck to a cautious tone ahead of key US reports on employment, manufacturing, housing, consumer confidence and Fed Chair Janet Yellen’s speech this week, which may offer further clues over the course of US interest rates. Gold, a non-interest bearing asset tends to lose sheen in a rising interest rate scenario. Read More - Mcx Tips .

Gold may trade lower today as investors eye Janet Yellen’s speech which may offer further cues over Fed’s rate hike trajectory. At the MCX, Gold futures for April 2016 contract closed at Rs 28,458 per 10 gram, down by 0.49 per cent after opening at Rs 28,525, against the previous closing price of Rs 28,599. It touched the intra-day low of Rs 28,270.