Gold futures end lower amid fading stimulus hopes
Gold futures ended lower in the domestic market on Friday as investors and speculators exited positions in the precious metal as an improving US economy raised bets that the US Federal Reserve will continue to taper its monthly bond buying program in the coming months and exit QE by the end of the year, dimming the appeal of the bullion, which is a hedge against the inflationary risk of monetary stimulus. St. Louis Federal Reserve Bank President James Bullard said that the US economy was on target to meet the central bank’s inflation and employment goals as he predicted robust economic growth for the rest of 2014. While QE is likely to be wound up by the end of 2014, Bullard predicted a rise in interest rates by the end of the first quarter of 2015, dimming gold’s appeal as a store of value. Gold futures may rise today as deepening tensions in Ukraine boost the bullion’s safe haven demand with pro-Russian separatists continuing to lock horns with the Ukrainian government. Gold futures for June 2014 contract, at MCX, closed at Rs. 28,089 per 10 grams, down by 1.12 per cent, after opening at Rs. 28,351, against the previous closing price of Rs 28,408. It touched an intra-day low of Rs 28,014.
Gold futures ended lower in the domestic market on Friday as investors and speculators exited positions in the precious metal as an improving US economy raised bets that the US Federal Reserve will continue to taper its monthly bond buying program in the coming months and exit QE by the end of the year, dimming the appeal of the bullion, which is a hedge against the inflationary risk of monetary stimulus. St. Louis Federal Reserve Bank President James Bullard said that the US economy was on target to meet the central bank’s inflation and employment goals as he predicted robust economic growth for the rest of 2014. While QE is likely to be wound up by the end of 2014, Bullard predicted a rise in interest rates by the end of the first quarter of 2015, dimming gold’s appeal as a store of value. Gold futures may rise today as deepening tensions in Ukraine boost the bullion’s safe haven demand with pro-Russian separatists continuing to lock horns with the Ukrainian government. Gold futures for June 2014 contract, at MCX, closed at Rs. 28,089 per 10 grams, down by 1.12 per cent, after opening at Rs. 28,351, against the previous closing price of Rs 28,408. It touched an intra-day low of Rs 28,014.
