Precious Metals
D A I L Y B U Z Z
GOLD
Gold futures closed lower in the domestic market on Thursday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market as stronger than expected US jobs data raised bets of continued QE taper by the Federal Reserve, dimming the appeal of the bullion, a hedge against the inflationary risk of monetary stimulus. The US economy added 288,000
jobs in June, compared to 215,000 estimated by analysts. Stronger dollar and a rise in equities dimmed
the appeal of the precious metal as an alternative asset. Stronger dollar makes the bullion more expensive for those holding other currencies, thus dimming demand. Gold futures may fall today amid
speculation that the Fed may start tightening monetary policy sooner than earlier estimated after upbeat
jobs data. Gold futures for August 2014 contract, at MCX, closed at Rs. 27,464 per 10 grams, down by 0.72 per cent, after opening at Rs. 27,564, against the previous closing price of Rs 27,663. It touched an intra-day low of Rs 27,363.
SILVER
Silver futures rose in the domestic market on Friday as investors and speculators booked fresh positions
in the precious metal amid a pickup in physical demand for silver in the domestic spot market.
However, the gains in the precious metal were capped by speculation that the US Federal Reserve may start raising borrowing costs sooner than earlier estimated after the economy created more than expected jobs last month, dimming the appeal of silver as a store of value. At the MCX, Silver futures, for the July 2014 contract, is trading at Rs. 44,625 per kg, up by 0.75 per cent, after opening at Rs. 44,490, against the previous closing price of Rs 44,291. It touched an intra-day high of Rs 44,750. (At 15:38 PM).
