Gold futures End Lower ; Fed Signals Dovish Stance

The yellow metal logged modest losses in the domestic market on Wednesday as strong US economic data eroded the safe haven lure for Gold. 

 

Factory production in the US climbed for a second straight month in February while builders began work on more than expected homes last month, and gains in core consumer prices topped forecasts, a sign that the world’s biggest economy remains in expansionary mode.
 

US consumer prices excluding food and fuel, climbed by 0.3 per cent in February from the prior month, the same as January, notching up the best back-to-back gains since early 2011. The overall consumer price index dropped 0.2 per cent in February from January. Read More - Mcx Tips
 

Gold may rally today after the US Federal Reserve scaled back its trajectory for raising interest rates this year, citing rising global economic and financial risks to growth in the world’s biggest economy, bolstering the lure for the bullion as a store of value.
 

The Fed which kept unchanged its target range for the benchmark federal funds rate between 0.25 to 0.5 per cent, pared back the number of rate hikes it anticipates in 2016 from two to four earlier, as it weighs the potential impact of slowing global growth and financial volatility on US growth.
 

At the MCX, Gold futures for April 2016 contract closed at Rs 28,966 per 10 gram, down by 0.24 per cent after opening at Rs 29,051, against the previous closing price of Rs 29,037. It touched the intra-day low of Rs 28,923.