Gold Updates - Yellow Metal Marks Bearish finish.

Gold futures closed in the red in the domestic market on Friday tracking weakness in the bullion internationally as a stronger dollar and a gain in US equities eroded the lure for the yellow metal as an alternative asset. Stronger greenback makes the bullion more expensive for those holding other currencies, thus dimming demand.

However, sentiment remained supported by the US Federal Reserve’s indication of a more dovish path to further interest rate hikes in the world’s biggest economy, which bolstered the lure for the precious metal as a store of value, trimming losses in Gold.
 

The world’s top central bank last week projected two interest rate hikes of 25 bps each in 2016, down from four earlier, citing risks to US growth from a growing global gloom.
 

Gold may trade on a cautious note today ahead of the US existing home sales data for February and after the President of the St. Louis Federal Reserve Bank James Bullard stressed that since the Fed’s inflation and employment goals have largely been met, it would be wise to push up interest rates towards more normal levels.Read More - “ MCX Tips ”
 

At the MCX, Gold futures for April 2016 contract closed at Rs 29,131 per 10 gram, down by 0.77 per cent after opening at Rs 29,399, against the previous closing price of Rs 29,356. It touched the intra-day low of Rs 29,003.