Gold prices closed higher in the domestic market on Tuesday in the midst of a flat dollar, as widespread concerns related to economic growth in China and the timing of an interest rate hike by the Federal Reserve remained in focus. Federal Reserve Bank of St. Louis president James Bullard stood firm on his position that economic conditions nationwide are strong enough to allow the Federal Open Market Committee to approve an initial rate hike. Gold is not attached to interest rates and struggles to compete with high-yield bearing assets in rising rate environments. Investors also continued to digest relatively hawkish comments from a host of central bankers over the weekend at the International Monetary Fund's Annual Meeting in Lima, urging the Fed to stop putting off an initial rate hike. At the MCX, Gold futures for December 2015 contract closed at Rs 26,979 per 10 gram, up by 0.71 per cent after opening at Rs 26,725, against the previous closing price of Rs 26,788. It touched the intra-day high of Rs 26,026.
Read more - Gold Prices & News
