Gold futures notched up impressive gains in the domestic market on Friday as investors and speculators booked fresh positions in the precious metal amidst speculation that the US Federal Reserve may push back the timetable for raising interest rates in the world’s biggest economy, for the first time in almost a decade, bolstered the lure for the bullion as a store of value.
FOMC minutes released on Thursday signaled caution on part of policymakers over raising interest rates despite an improvement in the US economy, as spillovers from a struggling Chinese economy threaten to hit other emerging markets.
Fed Vice Chairman Stanley Fisher said that a 2015 rate hike was an expectation, but not a commitment, with considerable uncertainties surrounding US economic outlook amidst slowing global growth which may hit exports, low investment due to a collapse in oil prices and recent dismal jobs growth data.
A weaker dollar also boosted the demand for Gold as alternative asset. Weaker greenback makes Gold cheaper for those holding other currencies, thus bolstering demand.
Gold may extend a rally on Monday on delayed Fed policy tightening hopes as traders eye comments from two key Fed officials.
At the MCX, Gold futures for December 2015 contract closed at Rs 26,622 per 10 gram, up by 0.67 per cent after opening at Rs 26,424, against the previous closing price of Rs 26,446. It touched the intra-day high of Rs 26,696.
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