Gold futures end lower on upbeat US economic data
Gold futures tumbled in the domestic market on Thursday as investors and speculators exited positions in the precious metal after mostly positive US economic data signaled strength in the world’s biggest economy, raising bets that the US Federal Reserve will continue to pare its monthly bond buying program in the coming months, dimming the appeal of the precious metal, which is a hedge against the inflationary risk of monetary stimulus. US jobless claims slumped to the lowest level in seven years, while manufacturing in the New York region surged to a two-year high in May while that in Philadelphia expanded, albeit at a slightly slower pace. US consumer prices rose the most since June, up 0.3 per cent in April 2014, signaling a revival in demand. An uptick in inflation failed to boost gold, which is a hedge against inflation. Fed Chairman Janet Yellen stressed that the US economy has still further to go to reach full health as she underscored the importance of small businesses in the US economic growth. Gold futures may trade on a cautious note today ahead of US housing starts and consumer sentiment data. Gold futures for June 2014 contract, at MCX, closed at Rs. 28,408 per 10 grams, down by 1.03 per cent, after opening at Rs. 28,680, against the previous closing price of Rs 28,704. It touched an intra-day low of Rs 28,375.
Gold futures tumbled in the domestic market on Thursday as investors and speculators exited positions in the precious metal after mostly positive US economic data signaled strength in the world’s biggest economy, raising bets that the US Federal Reserve will continue to pare its monthly bond buying program in the coming months, dimming the appeal of the precious metal, which is a hedge against the inflationary risk of monetary stimulus. US jobless claims slumped to the lowest level in seven years, while manufacturing in the New York region surged to a two-year high in May while that in Philadelphia expanded, albeit at a slightly slower pace. US consumer prices rose the most since June, up 0.3 per cent in April 2014, signaling a revival in demand. An uptick in inflation failed to boost gold, which is a hedge against inflation. Fed Chairman Janet Yellen stressed that the US economy has still further to go to reach full health as she underscored the importance of small businesses in the US economic growth. Gold futures may trade on a cautious note today ahead of US housing starts and consumer sentiment data. Gold futures for June 2014 contract, at MCX, closed at Rs. 28,408 per 10 grams, down by 1.03 per cent, after opening at Rs. 28,680, against the previous closing price of Rs 28,704. It touched an intra-day low of Rs 28,375.
