Gold futures jumped in the domestic and international market on Thursday as fresh signs of underlying weakness in the world’s biggest economy bolstered the safe haven lure for the yellow metal while a weaker dollar boosted the appeal of the bullion as an alternative investment. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand.
Services growth in the US slowed for a fourth month on the trot in February 2016 as the industry shed jobs for the first time in two years.
Further, the number of Americans who filed to claim unemployment insurance benefits rose last week while factory orders climbed a less than expected 1.6 per cent in January.
Weaker than expected data also raised speculation that the US Federal Reserve may delay further interest rate hikes, bolstering the appeal of Gold as a store of value.
Gold may trade lower today on caution ahead of the February jobs data which may provide an insight into the trajectory of the Federal Reserve’s approach to raising interest rates further.
At the MCX, Gold futures for April 2016 contract closed at Rs 29,616 per 10 gram, up by 0.94 per cent after opening at Rs 29,275, against the previous closing price of Rs 29,339. It touched the intra-day high of Rs 29,681.
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