Gold futures dip amid weak global cues
Gold futures ended lower in the domestic market on Tuesday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market as a stronger dollar dimmed the appeal of the bullion as an alternative asset. Stronger dollar makes gold more expensive for those holding other currencies, thus dimming demand. A rally in US equities to a record high also dimmed the appeal of gold as an alternative asset. However, rising tensions between Russia and Ukraine with pro-Russian separatists seeking to join Russia after referendums and the probability of further sanctions against Moscow boosted the safe haven appeal of gold, trimming losses in gold futures. Gold futures may trade subdued today as an improving US economy dents the appeal of the precious metal as an alternative asset. Gold futures for June 2014 contract, at MCX, closed at Rs. 28,462 per 10 grams, down by 0.58 per cent, after opening at Rs. 28,590, against the previous closing price of Rs 28,628. It touched an intra-day low of Rs 28,432.
Gold futures ended lower in the domestic market on Tuesday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market as a stronger dollar dimmed the appeal of the bullion as an alternative asset. Stronger dollar makes gold more expensive for those holding other currencies, thus dimming demand. A rally in US equities to a record high also dimmed the appeal of gold as an alternative asset. However, rising tensions between Russia and Ukraine with pro-Russian separatists seeking to join Russia after referendums and the probability of further sanctions against Moscow boosted the safe haven appeal of gold, trimming losses in gold futures. Gold futures may trade subdued today as an improving US economy dents the appeal of the precious metal as an alternative asset. Gold futures for June 2014 contract, at MCX, closed at Rs. 28,462 per 10 grams, down by 0.58 per cent, after opening at Rs. 28,590, against the previous closing price of Rs 28,628. It touched an intra-day low of Rs 28,432.
