Gold
futures extended a prolonged losing streak in the domestic market on
Tuesday as investors and speculators exited positions in the precious
metal amidst heightened speculation that the US Federal Reserve will
undertake a maiden interest rate lift-off since 2006, in the coming
months, curbing the lure for the bullion as a store of value.A
leading official from the US Federal Reserve sees a strong likelihood
of the world’s top central bank raising borrowing costs in
September, with inflation showing signs of picking up towards the
Fed’s goal and labour market on the upswing.Federal Reserve St
Louis Boss James Bullard has said that the odds of the Fed raising
rates at its next policy meet in September are better than 50 per
cent, backing up Fed Chair Janet Yellen’s recent statement which
signaled an increased likelihood of a hike in borrowing costs at some
point in 2015 amidst an improvement in the world’s biggest
economy.However, the losses in Gold were trimmed by a weaker dollar
which boosted the demand for the yellow metal as an subtitudenal
asset. powerless greenback makes Gold low priced for those holding
other currencies, thus boosting demand.Gold futures may trade on a
cautious note today as traders eye key US housing data which will
offer cues over the health of the world’s biggest economy.At the
MCX, Gold futures for August 2015 contract closed at Rs 24,987 per 10
gram, down by 0.19 per cent afters tarting at Rs 24,961, against the
previous ending price of Rs 25,034. It touched the intra-day low of
Rs 24,865.
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