Thursday, July 30, 2015

Gold futures succumbed to modest losses

Gold futures succumbed to modest losses in the domestic market on Wednesday as investors and speculators exited positions in the precious metal as a stronger dollar curbed the lure for the bullion as an alternative asset.Powerfull greenback makes Gold more prifitable for those holding other currencies, thus dimming demand.While the US Federal Reserve stuck to record low interest rates, it offered an upbeat view of the world’s biggest economy, thus remaining on course for rate tightening later this year, dimming the appeal of the bullion as a store of value. The Fed stressed that job gains had been solid, while dropping the modifier “somewhat” from its description of the decline in labour market slowly, keeping the Gates open for a trek in borrowing costs for the first time Ago 2006, this year.Even as the FOMC refrained from giving markets, a Fair signal of the period of the interest rate lift-off, the world’s biggest central bank has says that the decision would be “data dependent”, subjets that if the economy progressed to improve on expected lines i.e. the labour market shows some further improvement and the Fed is reasonably confident that inflation is moving back to the 2 per cent goal, then policy tightening will be justified probably as early as September or later this year.Gold may trade on a cautious note today ahead of the Q2 US GDP data set for release today which may show that the American economy expanded at an equalized rate of 2.5 % following a 0.2 % contraction in the March quarter.
At the MCX, Gold futures for August 2015 contract closed at Rs 24,720 per 10 gram, down by 0.13 per cent after cracking at Rs 24,778, against the previous closing price of Rs 24,752. It touched the intra-day low of Rs 24,691.

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