MCX GOLD TIPS: Gold futures fell during noon trade in the domestic market on Friday as a rebound in global equities amid easing concerns over China after the country’s officials moved to calm volatility in stock markets by abandoning a system of market circuit breakers whilst refraining from a further reduction in the Yuan’s reference rate, dimmed the safe haven lure for the yellow metal.
Traders also resorted to profit-booking in the precious metal after a stellar rally over the past few sessions when heightened geopolitical tensions amidst the Saudi-Iran tussle, North Korea’s successful testing of a hydrogen bomb, and a China stock market rout that wiped out more than USD 2 trillion from global equities, had sparked a surge in safe haven inflows into the bullion.
Caution ahead of the monthly US payrolls data which may show that the world’s biggest economy probably added 200,000 jobs in December, signaling strength in the country’s labour market recovery, bolstering the case for the US Fed to keep lifting interest rates this year, and dimming the lure for Gold as a store of value, also weighed on Gold futures.
At the MCX, Gold futures for February 2016 contract is trading at Rs 25,936 per 10 gram, down by 0.63 per cent after opening at Rs 26,022, against the previous closing price of Rs 26,100. It touched the intra-day low of Rs 25,931. (At 12:08 PM).
Traders also resorted to profit-booking in the precious metal after a stellar rally over the past few sessions when heightened geopolitical tensions amidst the Saudi-Iran tussle, North Korea’s successful testing of a hydrogen bomb, and a China stock market rout that wiped out more than USD 2 trillion from global equities, had sparked a surge in safe haven inflows into the bullion.
Caution ahead of the monthly US payrolls data which may show that the world’s biggest economy probably added 200,000 jobs in December, signaling strength in the country’s labour market recovery, bolstering the case for the US Fed to keep lifting interest rates this year, and dimming the lure for Gold as a store of value, also weighed on Gold futures.
At the MCX, Gold futures for February 2016 contract is trading at Rs 25,936 per 10 gram, down by 0.63 per cent after opening at Rs 26,022, against the previous closing price of Rs 26,100. It touched the intra-day low of Rs 25,931. (At 12:08 PM).
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