Against
the backdrop of worries over a near-term Fed rate hike, ebbing safe
haven demand and a roaring greenback, the yellow metal extended
losses from a five-year low, tanking nearly 2 per cent in the
domestic market on Monday.Holdings in bullion-backed exchange traded
funds fell to the lowest level in nearly seven years, signaling
Gold’s fast dimming investment appeal. Assets in the SPDR Gold
expectation , the biggest Gold-backed replaced traded fund slumped to
the lowest level since September 2008 when the collapse of Lehman
Brothers triggered the Great Recession.Hypothesis that the US Federal
Reserve will boost interest rates for the first time since 2006, in
the coming months as inflation shows signs of picking up and the
labour market improves, hurt Gold’s appeal as a store of value,
while firing up the dollar, and hence curbing the lure for the
bullion as an alternative asset.Atletic greenback makes Gold more
profitable for those holding other currencies, thus dimming
demand.Meanwhile, easing fears over Greece also cut Gold’s safe
haven demand as Greek banks opened following a three-week shutdown
while the country made a 2 billion euro repayment to the IMF.Gold may
writing a small revive today as steep losses in previous sessions may
trigger bargain buying in the metal.At the MCX, Gold futures for
August 2015 contract closed at Rs 25,034 per 10 gram, down by 1.82
per cent after opening at Rs 25,475, against the previous closing
price of Rs 25,498. It touched the intra-day low of Rs 24,904.
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