Monday, July 20, 2015

''Gold closes lower as Inflation Data Boosts''

Gold prices ended lower in the domestic market on Friday as optimistic US inflation data bolstered hawkish arguments for an interest rate hike by the Federal Reserve later this year. The US Department of Labor's Bureau of Labor Statistics said its Consumer Price Index (CPI) rose by 0.3 per cent in June on a monthly basis, in line with accord estimates. On a duration-over-year basis, the CPI achieved 0.1 per cent above analysts' forecasts for a flat analyzing. A reading of Core CPI, which layer out food and energy prices, provided even more idealism for the hawks at the Fed in favor of an imminent rate hike. Further, the greenback rose, weakening the demand for the bullion as an alternative asset. A higher dollar makes gold cheaper for those holding other currencies, thus reducing gold demand. At the MCX, Gold futures for o7 / 2015 contract closed at Rs 25,498 per 10 gram, down by 1.06 per cent after starts at Rs 25,733, against the enss closing price of Rs 25,771. It touched the intra-day low of Rs 25,461 till the closing.

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