Gold futures closed lower in the domestic market on Friday as the dollar firmed in anticipation of an interest rate hike at next week’s Federal Reserve meeting. Market-based indicators put the odds of a Fed rate hike next week at nearly 100%. The move would be central bank’s second postcrisis rate hike. The first occurred nearly a year ago at the Fed’s December 2015 policy meeting.
Higher interest rates typically cause the dollar to strengthen, which often weighs on commodities like gold that have prices denominated in dollars.
At the MCX, gold futures for February 2017 contract ended at Rs 27583 per 10 grams, down by 0.70 per cent, after opening at Rs 27,750 against a previous close of Rs 27,777. It touched the intra-day low of Rs 27,531.
Higher interest rates typically cause the dollar to strengthen, which often weighs on commodities like gold that have prices denominated in dollars.
At the MCX, gold futures for February 2017 contract ended at Rs 27583 per 10 grams, down by 0.70 per cent, after opening at Rs 27,750 against a previous close of Rs 27,777. It touched the intra-day low of Rs 27,531.
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