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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