Tuesday, October 6, 2015

Gold Notched up Impressive Gains in the Domestic Market

The yellow metal notched up impressive gains in the domestic market on Monday as investors and speculators booked fresh positions in Gold as tepid US jobs data for September pushed back bets of a hike in interest rates by the US Federal Reserve, bolstering the lure for the bullion as a store of value.

American employers added fewer than expected jobs in September while wages grinded to a halt and factory orders fell in August, a sign that the global financial rout has reached the shores of the US economy, prompting the case for the Fed to delay tightening policy until next year.

Non-farm payrolls in the US advanced by 142,000 in September, following a downwardly revised 136,000 gain in August from 173,000 reported earlier, while wages were little changed.

Further, hopes that China may announce fresh policy easing to stem a worsening slowdown in the world’s second biggest economy following a reduction in the country’s growth estimates by the World Bank also augured well for gold, a hedge against the inflationary risk of monetary stimulus.

Gold futures may extend a rally today amid bets that global monetary policy may remain accommodative to prop up sluggish growth.

At the MCX, Gold futures for Oct 2015 contract closed at Rs 25,953 per 10 gram, up by 0.70 per cent after opening at Rs 26,173, against the previous closing price of Rs 25,773. It touched the intra-day high of Rs 26,201.

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