Gold futures end higher on global cues
20/05/2014 09:35
Gold futures ended higher in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market as a weaker dollar boosted the appeal of the bullion as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand. Deepening tensions in Ukraine boosted the bullion’s safe haven demand as pro-Russian separatists continued to lock horns with the Ukrainian government. Speculation that India, the world’s second biggest bullion consumer, may cut the 10 per cent import duty on gold may boost demand for the precious metal, supported prices. Sentiment was also boosted after the European Central Bank (ECB) said that gold remains a major part of global monetary reserves and that it does not have any plans to sell significant amounts of gold. Gold futures may trade on a subdued note today as investors stay cautious ahead of the FOMC minutes this week where the Fed may signal continued paring of QE. Gold futures for June 2014 contract, at MCX, closed at Rs. 28,144 per 10 grams, up by 0.20 per cent, after opening at Rs. 28,050, against the previous closing price of Rs 28,089. It touched an intra-day high of Rs 28,299.
20/05/2014 09:35
Gold futures ended higher in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market as a weaker dollar boosted the appeal of the bullion as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand. Deepening tensions in Ukraine boosted the bullion’s safe haven demand as pro-Russian separatists continued to lock horns with the Ukrainian government. Speculation that India, the world’s second biggest bullion consumer, may cut the 10 per cent import duty on gold may boost demand for the precious metal, supported prices. Sentiment was also boosted after the European Central Bank (ECB) said that gold remains a major part of global monetary reserves and that it does not have any plans to sell significant amounts of gold. Gold futures may trade on a subdued note today as investors stay cautious ahead of the FOMC minutes this week where the Fed may signal continued paring of QE. Gold futures for June 2014 contract, at MCX, closed at Rs. 28,144 per 10 grams, up by 0.20 per cent, after opening at Rs. 28,050, against the previous closing price of Rs 28,089. It touched an intra-day high of Rs 28,299.
