Wednesday, July 29, 2015

Gold updates for fresh wednesday

The yellow metal on Tuesday, fell prey to widespread caution among traders, as Gold futures registered significant losses with all eyes glued to the outcome of the two-day US Federal Reserve policy meet late Wednesday, in which the world’s top central bank is likely to offer some cues over the timing for a maiden interest rate lift-off since 2006.Fed Chair Janet Yellen indicated recently that the FOMC is likely to raise rates at some point in 2015, curbing the lure for Gold as a store of value as the precious metal, which doesn’t earn any interest, loses out against competing assets.Many anticipate that the ongoing July meet would be the last before the Fed begins a planned lift-off in interest rates most likely from September.While China’s stocks extended a rout, Wall Street rebounded on Tuesday as better than estimated corporate
earnings bolstered sentiment, curbing some of the safe haven appeal for the bullion.Modest gains in the dollar also dimmed the appeal of the precious metal as an substitudenal asset. Stronger greenback makes Gold more expensive for those holding other currencies, thus curbing demand.Gold may extend losses today as traders play safe ahead of the FOMC policy meet outcome late Wednesday.At the MCX, Gold futures for August 2015 contract closed at Rs 24,752 per 10 gram, down by 0.59 per cent after cracking at Rs 24,799, against the end closing price of Rs 24,899. It touched the intra-day low of Rs 24,701.
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