Gold prices dropped on Friday on account of profit booking by traders as prices had earlier surged on expectations that any rate hikes by the Fed will be gradual based on comments from Federal Reserve Board Chair Janet Yellen.
Prices had surged ahead of a public appearance by Federal Reserve chair Janet Yellen after the close of trading, as investors digested dovish indications from the Fed's March minutes that the US central bank will remain cautious with the timing of its next interest rate hike. At the MCX, Gold futures for June 2016 contract is trading at Rs 28,990 per 10 gram, down by 0.24 per cent after opening at Rs 29,145, against the previous closing price of Rs 29,060. It touched the intra-day low of Rs 28,955.
Further, a stronger dollar reduced the appeal of gold as an alternative asset. Stronger greenback makes the bullion expensive for those holding other currencies, thus reducing demand.
0 comments:
Post a Comment