Gold futures plunged By More than 1 % in the Domestic Market

Gold futures plunged by more than 1 per cent in the domestic market on Wednesday as investors and speculators shunned the yellow metal tracking weak overseas cues as dovish comments by Fed officials over further interest rate hikes buoyed the appetite for risky assets, denting the safe haven appeal for the bullion.

Chicago Fed President Charles Evans backed Fed Chair Janet Yellen, as he expressed concerns over global volatility that could slow US growth, diminishing the chances of further rate tightening in the near-term, helping power a rally in equities, eroding the appeal of gold has an alternative asset.  

 

Evans stressed that the Fed is ready to tolerate above-target inflation for a brief period as a slowing global economy weighs on US economic growth, reducing the case for a rate hike in the Fed’s upcoming meet in April. Read More At – Mcx Tips
 

Meanwhile, a firming labour market recovery in the world’s biggest economy as private payrolls rose by 200K in March, topping estimates for a 195K gain curbed the lure for safe haven assets.
 

Gold may rebound today as indications that the Fed may raise interest rates more slowly bolsters the appeal of the bullion as a store of value.
 

At the MCX, Gold futures for April 2016 contract closed at Rs 28,407 per 10 gram, down by 1.17 per cent after opening at Rs 28,655, against the previous closing price of Rs 28,743. It touched the intra-day low of Rs 28,361.