Gold futures continue downward journey
22/05/2014 10:57
Gold futures fell in the domestic market on Thursday as investors and speculators exited positions in the precious metal tracking a subdued trend in the overseas market as prospects of continued tapering of QE by the Fed dimmed gold’s appeal as a hedge against the inflationary risk of monetary stimulus. Minutes from the US Federal Reserve’s meet released on Wednesday showed that the Fed discussed multiple options from an exit from its easy monetary policy while predicting muted inflation in the world’s biggest economy. Falling investment demand for the precious metal amid a dip in asset holdings in bullion-backed exchange traded products also added to the gloom for gold. Gold futures for June 2014 contract, at MCX, is trading at Rs. 27,296 per 10 grams, down by 0.28 per cent, after opening at Rs. 27,300, against the previous closing price of Rs 27,373. It touched an intra-day low of Rs 27,225. (At 10:41 AM).
22/05/2014 10:57
Gold futures fell in the domestic market on Thursday as investors and speculators exited positions in the precious metal tracking a subdued trend in the overseas market as prospects of continued tapering of QE by the Fed dimmed gold’s appeal as a hedge against the inflationary risk of monetary stimulus. Minutes from the US Federal Reserve’s meet released on Wednesday showed that the Fed discussed multiple options from an exit from its easy monetary policy while predicting muted inflation in the world’s biggest economy. Falling investment demand for the precious metal amid a dip in asset holdings in bullion-backed exchange traded products also added to the gloom for gold. Gold futures for June 2014 contract, at MCX, is trading at Rs. 27,296 per 10 grams, down by 0.28 per cent, after opening at Rs. 27,300, against the previous closing price of Rs 27,373. It touched an intra-day low of Rs 27,225. (At 10:41 AM).
