Thursday, July 23, 2015

Gold News - " Yellow metal extends steep slide"

Gold futures extended a decline in the domestic market on Wednesday as robust US housing data signaled the improving health of the world’s biggest economy, bolstering the case for the US Federal Reserve to begin a lift-off in interest rates for the first time since 2006, curbing the lure for the bullion as a store of value.Sales of existing homes in the US surged to the highest level in eight years, up by 3.2 per cent to a 5.49 million annual pace in June 2015.Gains in the dollar also limited Gold’s demand as an alternative resource .Stronger greenback makes Gold more costly for those holding other currencies, thus lower demand.A rout in other commodities including metals and oil has signaled lower global inflation, dampening gold’s appeal as an inflation hedge.Further, a return to calm at global financial markets with Grexit safely averted and China’s stock markets bouncing back after a rout earlier this month has hit the bullion’s safe haven lure.Gold may trade on a cautious note today as traders eye key US data including the weekly jobless claims numbers and leading index data for June which will offer cues over the growth in the world’s biggest economy.At the MCX, Gold futures for August 2015 contract closed at Rs 24,677 per 10 gram, down by 0.88 per cent after cracking at Rs 24,811, against the endi closing price of Rs 24,897. It touched the intra-day low of Rs 24,572.
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