MCX GOLD TIPS | Gold treads water ahead of US economic data

MCX GOLD TIPS | Gold futures were trading in the red during late morning trade in the domestic market on Friday as investors and speculators adopted a cautious stance ahead of key US economic data which may show a strengthening recovery in the US economy, bolstering the case for the Federal Reserve to raise borrowing costs for the first time in almost a decade next week, dimming the lure for the yellow metal as a store of value.

US retail sales likely rose by 0.3 per cent in October 2015 from the previous month, when they climbed 0.1 per cent, while core producer prices probably climbed 0.2 per cent, on the year, accelerating from a 0.1 per cent rise in September 2015, signaling firming inflationary pressures.

At the MCX, Gold futures for February 2016 contract is trading at Rs 25,388 per 10 gram, down by 0.12 per cent after opening at Rs 25,357, against the previous closing price of Rs 25,418. It touched the intra-day low of Rs 25,293. (At 11:52 AM).