MCX Gold Tips: Gold futures ended lower in the indian market on Wednesday as investors and speculators exited positions in the bullion tracking weakness in the overseas market as continued strength in the US dollar curbed the lure for the precious metal as an alternative asset.
Stronger greenback makes bullion more expensive for those holding other currencies, thus dimming demand.
Further, a renewed slump in oil prices raised fears over global deflationary pressures, dimming the appeal of the yellow metal, a hedge against inflation. Oil prices slid nearly 3 per cent on Wednesday as a surprise expansion in US crude oil stockpiles exacerbated fears over a global supply glut.
Trading volumes were thin with most traders having already closed their books, ahead of the New Year.
The losses in the precious metal were limited by speculation that the US Federal Reserve may raise interest rates at a gradual pace, supporting gold’s appeal as a store of value.
A surprise drop in US pending home sales signaled a slowing housing recovery in the world’s biggest economy, bolstering the case for a measured pace of interest rate tightening.
Gold may trade lower today amidst caution ahead of US jobless claims and Chicago PMI data which may offer further cues over the health of the US economy.
At the MCX, Gold futures for February 2016 contract closed at Rs 24,982 per 10 gram, down by 0.59 per cent after opening at Rs 25,200, against the last closing price of Rs 25,130. It touched the intra-day low of Rs 24,970.
Stronger greenback makes bullion more expensive for those holding other currencies, thus dimming demand.
Further, a renewed slump in oil prices raised fears over global deflationary pressures, dimming the appeal of the yellow metal, a hedge against inflation. Oil prices slid nearly 3 per cent on Wednesday as a surprise expansion in US crude oil stockpiles exacerbated fears over a global supply glut.
Trading volumes were thin with most traders having already closed their books, ahead of the New Year.
The losses in the precious metal were limited by speculation that the US Federal Reserve may raise interest rates at a gradual pace, supporting gold’s appeal as a store of value.
A surprise drop in US pending home sales signaled a slowing housing recovery in the world’s biggest economy, bolstering the case for a measured pace of interest rate tightening.
Gold may trade lower today amidst caution ahead of US jobless claims and Chicago PMI data which may offer further cues over the health of the US economy.
At the MCX, Gold futures for February 2016 contract closed at Rs 24,982 per 10 gram, down by 0.59 per cent after opening at Rs 25,200, against the last closing price of Rs 25,130. It touched the intra-day low of Rs 24,970.
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