Thursday, August 20, 2015

Freshly Updates on Gold News 20 Aug

Gold futures finished stronger in Wednesday’s trade after minutes released from the Federal Reserve latest meet, showed that policymakers were concerned over anemic inflation as the world’s top central bank said that conditions meriting a maiden interest rate hike in nine years weren’t in place as yet even though they were approaching, reducing bets of policy tightening in September, bolstering the appeal of the yellow metal as a store of value.Against the backdrop of worsening global financial market volatility especially in light of the turmoil in China, Fed policymakers are seeking more evidence of a pickup in economic growth and labour markets and need more confidence that inflation is moving towards the required goal.Consumer prices in the US rose 0.1 per cent in July, the slowest pace of gain in three months, and following the 0.3 per cent climb in June, warranting a delay in rate tightening.A weaker dollar bolstered the demand for Gold as an alternative asset. Weaker greenback makes Gold less expensive for those holding other currencies, thus bolstering demand.Gold may extend gains today as a worsening rout in emerging market currencies and global stocks bolsters safe haven demand.
At the MCX, Gold futures for October 2015 contract closed at Rs 26,196 per 10 gram, up by 0.72 per cent after opening at Rs 25,977, against the previous closing price of Rs 26,008. It touched the intra-day high of Rs 26,239.
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