Wednesday, June 17, 2015

Base Metals & Energy For 17 June 2015

Gold futures succumbed to modest losses in the domestic market on Tuesday as investors and speculators stuck to a cautious approach as the US Federal Reserve began a two-day monetary policy meet. While the world’s top central bank is expected to stick to record low interest rates, it may offer some cues over the timing for a maiden lift-off since 2006. Being a hedge against the inflationary risk of monetary fillips, Gold tends to benefit from ultra-easy money policies from global central banks. A stronger dollar also curbed the demand for the bullion as an alternative asset. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand. Lingering worries over Greece as the cash strapped nation scrambles to reach a debt compromise with its creditors continued to support Gold’s safe haven appeal, trimming losses in Gold. Bullion may continue to trade on a subdued today as the Fed announces its monetary policy decision. At the MCX, Gold futures for June 2015 contract closed at Rs 26,956 per 10 gram, down by 0.27 after opening at Rs 27,011, against the last closing price of Rs 27,029. It touched the intra-day low of Rs 26,869 till the closing.