MCX Bullions tips: Gold futures closed on a bearish note in the domestic market on Friday as investors and speculators stuck to a cautious stance ahead of the two-day Fed monetary policy meet on September 16-17 as the world’s top central bank considers the timing to bring down the curtains on its zero interest rate policy.
Any indication by the FOMC to raise interest rates in the near-term will be negative for Gold, a non-interest bearing asset.
Weakness in the dollar against major peers, however, supported Gold’s appeal as an alternative asset, trimming losses in the precious metal. Weaker greenback makes Gold inexpensive for those holding other currencies, thus bolstering demand.
Many experts believe that the Fed may refrain from a rate hike this week amidst the China induced mayhem in global financial markets.
US consumer sentiment tumbled in September while wholesale prices were little changed in August amidst lower fuel prices, bolstering the case for the Fed to delay tightening of borrowing costs at least in September. US producer prices were flat in August, following a 0.2 % rise in July.
Gold may rally today as a weaker dollar amidst hopes that the Fed may refrain from a lift-off in interest rates this week bolsters sentiment.
At the MCX, Gold futures for October 2015 contract closed at Rs 25,967 per 10 gram, down by 0.75 per cent after opening at Rs 26,179, against the previous closing price of Rs 26,163. It touched the intra-day low of Rs 25,900.
Any indication by the FOMC to raise interest rates in the near-term will be negative for Gold, a non-interest bearing asset.
Weakness in the dollar against major peers, however, supported Gold’s appeal as an alternative asset, trimming losses in the precious metal. Weaker greenback makes Gold inexpensive for those holding other currencies, thus bolstering demand.
Many experts believe that the Fed may refrain from a rate hike this week amidst the China induced mayhem in global financial markets.
US consumer sentiment tumbled in September while wholesale prices were little changed in August amidst lower fuel prices, bolstering the case for the Fed to delay tightening of borrowing costs at least in September. US producer prices were flat in August, following a 0.2 % rise in July.
Gold may rally today as a weaker dollar amidst hopes that the Fed may refrain from a lift-off in interest rates this week bolsters sentiment.
At the MCX, Gold futures for October 2015 contract closed at Rs 25,967 per 10 gram, down by 0.75 per cent after opening at Rs 26,179, against the previous closing price of Rs 26,163. It touched the intra-day low of Rs 25,900.
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