MCX Bullions Tips: Gold futures closed on a bullish note in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market amid bets that the US Federal Reserve may decide to refrain from an increase in US borrowing costs when it meets this week amidst the ongoing global financial market turmoil, bolstering the lure for the bullion as a store of value.
US producer prices were little changed in August while consumer sentiment slipped to the lowest level in a year in September, raising speculation that the FOMC that meets on Wednesday & Thursday may hold borrowing costs near zero.
Gold, a non-interest bearing asset tends to lose out during a rising interest rate scenario.
Tepid China data which showed that the country’s industrial output growth for August missed estimates while investment expansion hit a 15-year low signaled concerns over the health of the global economy, spurring safe haven demand for the bullion.
Gold may trade on a flat note today as traders stick to the sidelines ahead of the FOMC meet beginning tomorrow.
At the MCX, Gold futures for October 2015 contract closed at Rs per 26,070 10 gram, up by 0.40 per cent after opening at Rs 26,123, against the previous closing price of Rs 25,967. It touched the intra-day high of Rs 26,125.
US producer prices were little changed in August while consumer sentiment slipped to the lowest level in a year in September, raising speculation that the FOMC that meets on Wednesday & Thursday may hold borrowing costs near zero.
Gold, a non-interest bearing asset tends to lose out during a rising interest rate scenario.
Tepid China data which showed that the country’s industrial output growth for August missed estimates while investment expansion hit a 15-year low signaled concerns over the health of the global economy, spurring safe haven demand for the bullion.
Gold may trade on a flat note today as traders stick to the sidelines ahead of the FOMC meet beginning tomorrow.
At the MCX, Gold futures for October 2015 contract closed at Rs per 26,070 10 gram, up by 0.40 per cent after opening at Rs 26,123, against the previous closing price of Rs 25,967. It touched the intra-day high of Rs 26,125.
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