Rupee appreciation weighs on Gold futures
23/05/2014 09:23
Gold futures ended lower in the domestic market on Thursday as a stronger rupee more than offset the gains in the precious metal in the overseas market. Stronger rupee against the US dollar exerted downward pressure on domestic bullion prices. The precious metal rose in the overseas market after India, the world’s second biggest bullion consumer eased import restrictions on gold as the country’s central bank enabled more players to import gold. Deepening tensions in Ukraine amid fierce fighting in the country’s eastern region boosted the safe haven demand for gold. Downbeat US jobless claims data which showed a rise in unemployment claims last week, signaled doubts over the health of the US labour market, raising bets that the Federal Reserve may refrain from fastening the pace of QE tapering, boosting the appeal of gold, a hedge against the inflationary risk of monetary stimulus. However, a stronger dollar curbed the demand for the bullion as an alternative asset, trimming gains in gold futures in the overseas market. Gold futures may climb today as a rise in US jobless claims boosted safe haven demand. Gold futures for June 2014 contract, at MCX, closed at Rs. 27,241 per 10 grams, down by 0.48 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 27,100.
23/05/2014 09:23
Gold futures ended lower in the domestic market on Thursday as a stronger rupee more than offset the gains in the precious metal in the overseas market. Stronger rupee against the US dollar exerted downward pressure on domestic bullion prices. The precious metal rose in the overseas market after India, the world’s second biggest bullion consumer eased import restrictions on gold as the country’s central bank enabled more players to import gold. Deepening tensions in Ukraine amid fierce fighting in the country’s eastern region boosted the safe haven demand for gold. Downbeat US jobless claims data which showed a rise in unemployment claims last week, signaled doubts over the health of the US labour market, raising bets that the Federal Reserve may refrain from fastening the pace of QE tapering, boosting the appeal of gold, a hedge against the inflationary risk of monetary stimulus. However, a stronger dollar curbed the demand for the bullion as an alternative asset, trimming gains in gold futures in the overseas market. Gold futures may climb today as a rise in US jobless claims boosted safe haven demand. Gold futures for June 2014 contract, at MCX, closed at Rs. 27,241 per 10 grams, down by 0.48 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 27,100.
