Tuesday, July 28, 2015

Gold logged impressive gains in the domestic market

The Bullion logged impressive gains in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal as a weaker dollar boosted the demand for Gold as an alternative asset.Powerless greenback makes Gold lowcost for those holding other currencies, thus bolstering demand.Further, a steep sell-off across markets in Asia and the US also boosted the lure for Gold as a safe haven asset. Shares in mainland China sank 8.5 per cent, the biggest one-day drop since 2007 on concerns over weakening economic growth.However, an upbeat US durable goods orders report with capital equipment orders bouncing back into positive terrain in June signaled improving health of the world’s biggest economy, bolstering the case for the US Federal Reserve to start considering an exit from its easy money policy, dimming the lure for Gold as a store of value, trimming gains in the bullion.Gold futures may trade on a cautious note on Tuesday as the US Federal Reserve begins a two-day meet today, wherein it may offer some cues over the timing to raise interest rates for the first time since 2006. At the MCX, Gold futures for August 2015 contract closed at Rs 24,899 per 10 gram, up by 0.68 per cent after cracking at Rs 24,830, against the ending price of Rs 24,731. It touched the intra-day high of Rs 25,018.