MCX GOLD TIPS | Gold prices closed lower in the domestic market on Thursday with the pace of future Federal Reserve rate hikes now the focus after Chief Janet Yellen recommended a "gradual path forward. The Federal Open Market Committee (FOMC) lifted the Federal Funds Rate by 25 basis points to a range between 0.25 and 0.50 per cent. A rate-hike is widely viewed as bearish for Bullion, which is not attached to interest dividends or rates, and struggles to compete with high-yield bearing assets. Further, a stronger dollar reduced the appeal of gold as an alternative asset. Stronger greenback makes the Gold expensive for those equity other currencies, thus reducing demand. At the MCX, Gold futures for February 2016 contract closed at Rs 24,841 per 10 gram, down by 2.46 per cent after opening at Rs 25,370, against the previous closing price of Rs 25,468. It touched the intra-day low of Rs 24,740.
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