MCX Bullions Tips: Gold futures closed with moderate losses in
the domestic market on Monday with overseas cues being limited on
account of the US Labour Day Holiday.
Further, uncertainty over the outlook for US interest rates kept traders
on the sidelines. While fewer jobs were added in the US in August, the
jobless rate plummeted to the lowest level since April 2008 and average
hourly earnings crept up, offering little clarity over the timing of a
maiden interest rate hike in the US since 2006.
Notwithstanding the slightly tepid August jobs data, Federal Reserve
Bank of Richmond President Jeffrey Lacker urged the world’s top central
bank to pull down the curtains on the era of near-zero interest rates as
he favoured a rate hike in the near-term with the US economic recovery
on track.
Gold, a non-interest bearing asset becomes less attractive in a rising interest rate scenario.
The yellow metal may bounce back today as worries over a deepening China slowdown bolster safe haven demand.
At the MCX, Gold futures for October 2015 contract closed at Rs 26,500
per 10 gram, down by 0.12 per cent after opening at Rs 26,580, against
the previous closing price of Rs 26,532. It touched the intra-day low of
Rs 26,462.
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