Gold Updates - Gold loses Sheen As Safe Haven lure Ebbs

Gold Updates - Gold futures finished lower in the domestic market on Tuesday tracking a bearish trend in the overseas market as investors and speculators exited positions in the precious metal as a jump in equities dimmed the appeal of the yellow metal as an alternative investment.

Better than expected US factory data and fresh stimulus from China helped ease concerns over global economic growth, dimming the luster for safe haven avenues such as Gold and powering a rally in equities with Wall Street rallying to a seven- week high.

Manufacturing in the US shrank less than estimated in February as the PMI rose to the highest level since September at 49.5 while construction spending jumped to the highest since October 2007 in January 2016, signaling a firm recovery in the world’s biggest economy despite global headwinds.

The cut in reserve requirements for banks by China raised optimism over the outlook for the world’s second biggest economy, bolstering risk taking appetite and eroding safe haven appeal for the bullion. Gold may trade on a cautious note today ahead of US private payrolls data.

At the MCX, Gold futures for April 2016 contract closed at Rs 29,226 per 10 gram, down by 0.97 per cent after opening at Rs 29,650, against the previous closing price of Rs 29,513. It touched the intra-day low of Rs 29,186.

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