MCX Gold Tips : Fed rate hike jitters drag down Bullion as on August 05.

MCX Gold Tips : Gold futures ended lower in the  private market on Tuesday amid speculation that the US Federal Reserve may raise interest rates next month for the first time since 2006, dimming the lure for the yellow metal as a store of value.

A leading official from the world’s top central bank warned that monetary tightening in September was almost a done deal as the economy shows signs of strengthening.

Federal Reserve Atlanta Bank President Dennis Lockhart, a voting member on the FOMC told the Wall Street Journal that the Fed was almost ready to hike borrowing costs as he signaled that only a considerable deterioration in economic data would prevent him from tightening rates in September.

A stronger dollar cut the demand for Gold as an alternative asset. Stronger greenback makes Gold more  extortionate for those holding other currencies, thus dimming demand.

Gold may extend losses today as investors stay on the sidelines ahead of US private sector payrolls data which may raise calls for tightening policy rates in the US.

At the MCX, Gold futures for August 2015 contract closed at Rs 24,675 per 10 gram, down by 0.35 per cent after starting at Rs 24,610, against the last closing price of Rs 24,761. It touched the intra-day low of Rs 24,570.