Yellow Metal Regains Some lost Luster

Gold Update - Gold futures were trading higher in the domestic market during noon trade on Tuesday as investors and speculators booked fresh positions in the precious metal tracking positive cues from the overseas market, where the bullion regained some bite even as it suffered the biggest monthly percentage loss since 2013, falling nearly 7 per cent in November as fears that the US Fed may raise interest rates in the near-term dimmed the lure for Gold as a store of value.

The focus this week is on US jobs data for November, Fed Chair Janet Yellen’s speech, both of which may offer further cues over the likelihood of a mid-December rate hike, while the ECB policy decision is also being eyed.

At the MCX, Gold futures for December 2015 contract is trading at Rs 25,177 per 10 gram, up by 0.43 per cent after opening at Rs 25,183, against the previous closing price of Rs 25,069. It touched the intra-day high of Rs 25,218.

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Gold futures Ended lower in the Domestic Market on Thursday

Gold futures ended lower in the domestic market on Thursday after minutes from the Federal Reserve’s September policy-setting meeting showed that central-bank officials held off on an interest-rate hike because downside risks had climbed. That implied the central bank may further delay raising rates, which is supportive for gold. Some of the selling may have been due to Chinese traders taking some profits on the recent strength in gold, following the end to the country’s “Golden Week” holiday. A reading of U.S. weekly jobless claims, which showed that the number of people applying for unemployment benefits marked its lowest level since mid-July, did little to change gold’s downward slide Thursday. At the MCX, Gold futures for December 2015 contract closed at Rs 26,446 per 10 gram, down by 0.41 per cent after opening at Rs 26,501, against the previous closing price of Rs 26,555. It touched the intra-day low of Rs 26,337.
 

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Gold closes lower on strong US dollar

Gold futures ended lower in the domestic market on Thursday as investors locked into profits earned in the prior session and the People's Bank of China soothed markets by insisting there is no basis for further devaluation of the yuan. Sentiment weakened further as the US dollar regained bite after a top Fed official signaled that the world’s leading central bank remained on course for an interest rate lift-off in the near future despite the Yuan devaluation saga, dimming the luster for the bullion as a store of value. New York Fed President William Dudley stressed that while the China devaluation move had huge implications for the global economy, the Fed remains on track for a maiden hike in policy rates in nine years in the near future, with the exact timing for policy tightening dependent on the quality of economic data. A stronger dollar curbs demand for Gold as an alternative asset. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand. At the MCX, Gold futures for October 2015 contract closed at Rs 25,895 per 10 gram, down by 0.46 per cent after opening at Rs 25,882, against the previous closing price of Rs 26,014. It touched the intra-day low of Rs 25,835.

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Gold futures succumbed to modest losses

Gold futures succumbed to modest losses in the domestic market on Wednesday as investors and speculators exited positions in the precious metal as a stronger dollar curbed the lure for the bullion as an alternative asset.Powerfull greenback makes Gold more prifitable for those holding other currencies, thus dimming demand.While the US Federal Reserve stuck to record low interest rates, it offered an upbeat view of the world’s biggest economy, thus remaining on course for rate tightening later this year, dimming the appeal of the bullion as a store of value. The Fed stressed that job gains had been solid, while dropping the modifier “somewhat” from its description of the decline in labour market slowly, keeping the Gates open for a trek in borrowing costs for the first time Ago 2006, this year.Even as the FOMC refrained from giving markets, a Fair signal of the period of the interest rate lift-off, the world’s biggest central bank has says that the decision would be “data dependent”, subjets that if the economy progressed to improve on expected lines i.e. the labour market shows some further improvement and the Fed is reasonably confident that inflation is moving back to the 2 per cent goal, then policy tightening will be justified probably as early as September or later this year.Gold may trade on a cautious note today ahead of the Q2 US GDP data set for release today which may show that the American economy expanded at an equalized rate of 2.5 % following a 0.2 % contraction in the March quarter.
                       At the MCX, Gold futures for August 2015 contract closed at Rs 24,720 per 10 gram, down by 0.13 per cent after cracking at Rs 24,778, against the previous closing price of Rs 24,752. It touched the intra-day low of Rs 24,691.

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