Thursday, December 10, 2015

Gold Futures Scored Modest Gains in the Domestic Market

Bullions Tips - Gold futures scored modest gains in the domestic market on Wednesday as investors and speculators booked fresh positions in the metal tracking a bullish trend in the overseas market as a sell-off in global equities, coupled with a weaker dollar bosst the appeal of the bullion as an alternative asset.
Weaker greenback makes the yellow metal cheaper for those holding other currencies, thus boosting demand.  However, the gains in the bullion were trimmed by fears that plummeting oil prices may further weaken global inflationary pressures, denting gold’s appeal as an inflation hedge; while rising speculation of a US Federal Reserve interest rate hike next week, the first in almost a decade, also curbed the bullion’s appeal as a store of value.
Analysts expect the world’s biggest central bank which meets on December 15 & 16, to finally the exit the era of zero interest rates. Gold may trade on a cautious note today ahead of the weekly jobless claims data which may offer further cues over the health of the labour market of the world’s biggest economy.
At the MCX, Gold futures for February 2016 contract closed at Rs 25,602 per 10 gram, up by 0.30 per cent after opening at Rs 25,530, against the previous closing price of Rs 25,526. It touched the intra-day high of Rs 25,747.