MCX GOLD TIPS | Gold prices rose by 0.39 per cent on Friday with the focus on the pace of future Federal Reserve rate hikes. Investors on Thu reacted to the Fed Open Market Committee's historic decision to abandon a zero interest rate policy it maintained over the last 7 years since the height of the Financial Crisis. In a unanimous decision, the FOMC, lifted the Fed Funds Rate by 25 basis points to a range between 0.25 and 0.50 per cent. Gold futures for February 2016 contract, at MCX, were trading at Rs. 24,938 per 10 grams, up by 0.39 per cent after opening at Rs. 24,871 against the previous closing price of Rs. 24,841. It touched the intra-day high of Rs. 24,951 till the trading.
Further, a weaker dollar raised the appeal of gold as an alternative asset. Weaker greenback makes the Gold cheaper for those holding other currencies, thus increasing demand.
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