Gold futures closed lower in the domestic market on Friday as renewed expectations for a Federal Reserve rate hike later this year boosted the U.S. dollar and as investors looked to buy into rising equity markets rather than purchasing safe-haven assets.
A recent string of better than expected U.S. data reignited speculation that the Federal Reserve will raise interest rates before the end of the year. Gold is sensitive to moves in U.S. rates. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
At the MCX, Gold futures for August 2016 contract closed at Rs 30877, per 10 gram, down by 0.41 per cent after opening at Rs 30,952, against the previous closing price of Rs 31,005. It touched the intra-day low of Rs 30,780.
A recent string of better than expected U.S. data reignited speculation that the Federal Reserve will raise interest rates before the end of the year. Gold is sensitive to moves in U.S. rates. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
At the MCX, Gold futures for August 2016 contract closed at Rs 30877, per 10 gram, down by 0.41 per cent after opening at Rs 30,952, against the previous closing price of Rs 31,005. It touched the intra-day low of Rs 30,780.
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