FREE MCX TIPS | Gold futures extended an advance in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the Foreign market as a weaker dollar propped up the demand for the bullion as an surrogate asset.
Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand.
Traders continued to assess the outlook for further rise in US interest rates with Fed Chair Janet Yellen indicating last week that the pace of rate tightening will be a gradual one, and would be dependent on the quality of US economic data.
Gold, a non-interest bearing asset, tends to lose sheen in a rising interest rate scenario.
The Fed on Wednesday raised interest rates for the first time since 2006, lifting the target for its federal funds rate to 0.25 per cent to 0.5 per cent, from 0 to 0.25 per cent previously amidst strong progress in the US economic recovery.
Gold may trade on a cautious note today ahead of the US revised Q3 GDP data which may show that the world’s biggest economy expanded by 1.9 per cent in the September quarter, compared to an earlier reported 2.1 per cent growth.
At the MCX, Gold futures for February 2016 contract closed at Rs 25,385 per 10 gram, up by 1.21 per cent after opening at Rs 25,173, against the last closing price of Rs 25,082. It touched the intra-day high of Rs 25,413
Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand.
Traders continued to assess the outlook for further rise in US interest rates with Fed Chair Janet Yellen indicating last week that the pace of rate tightening will be a gradual one, and would be dependent on the quality of US economic data.
Gold, a non-interest bearing asset, tends to lose sheen in a rising interest rate scenario.
The Fed on Wednesday raised interest rates for the first time since 2006, lifting the target for its federal funds rate to 0.25 per cent to 0.5 per cent, from 0 to 0.25 per cent previously amidst strong progress in the US economic recovery.
Gold may trade on a cautious note today ahead of the US revised Q3 GDP data which may show that the world’s biggest economy expanded by 1.9 per cent in the September quarter, compared to an earlier reported 2.1 per cent growth.
At the MCX, Gold futures for February 2016 contract closed at Rs 25,385 per 10 gram, up by 1.21 per cent after opening at Rs 25,173, against the last closing price of Rs 25,082. It touched the intra-day high of Rs 25,413
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