Precious Metals
D A I L Y B U Z Z
GOLD
Gold futures closed higher in the domestic market on Thursday as investors and speculators booked fresh positions in the precious metal after minutes from the US Federal Reserve’s latest meet signaled that policymakers are willing to keep interest rates near zero for a longer period as risks such as a stronger dollar and the Greek crisis, overshadow a strong US labour market recovery, bolstering the appeal of the bullion as a store of value. Most policymakers “indicated that their assessment of the balance of risks associated with the timing of the beginning of policy normalization had inclined them toward” keeping rates near zero “for a longer time”, the minutes showed, as the Fed stuck to its pledge of being “patient” over hiking short-term borrowing costs. Further, lingering impasse between Greece and its creditors over a debt compromise raised fears over a Greek default and an exit from the euro, boosting the safe haven demand for the bullion. Reports emerged that Germany has rejected a proposed bailout extension request from Greece which is fast running out of cash. Greece on Tuesday had submitted a six-month loan extension but Germany said that the proposal was not a significant solution and didn’t meet the criteria proposed by the Euro group of finance ministers. Gold may extend gains today after the Fed signaled that it may keep rates at lower levels for longer. At the MCX, Gold futures for April 2015 contract closed at Rs 26,266 per 10 gram, up by 0.49 per cent after opening at Rs 26,245, against the previous closing price of Rs 26,137. It touched the intra-day high of Rs 26,510 till the closing.
