Gold futures end flat after Fed trims QE
19/06/2014 09:19
Gold futures ended with slim losses in the domestic market on Wednesday as investors and speculators were cautious over booking fresh positions in the precious metal after the US Federal Reserve pared its record monthly bond buying program for a fifth straight meeting, dimming the appeal of the bullion, which is a hedge against the inflationary risk of monetary stimulus. Fed trimmed QE by USD 10 billion to USD 35 billion and stressed that it is likely to reduce the pace of asset purchases in further measured steps. The central bank also signaled a strong rebound in the world’s biggest economy this quarter and an improvement in the job market, dimming the safe haven appeal of gold. The Fed sees the US economy expanding at a moderate pace, going forward. However, the Fed said that interest rates are likely to remain at low levels for a considerable time even after QE is fully wound up, supporting the outlook for gold as a store of value, curbing losses in the precious metal. The Fed maintained its key benchmark interest rate unchanged near zero. Gold futures may rise today as deepening unrest in Iraq boosts safe haven demand for the bullion while the Fed vowed to keep interest rates at low levels for a considerable time, boosting the demand for the bullion as an alternative asset. Gold futures for August 2014 contract, at MCX, closed at Rs. 26,826 per 10 grams, down by 0.05 per cent, after opening at Rs. 26,787, against the previous closing price of Rs 26,839. It touched an intra-day low of Rs 26,690.
19/06/2014 09:19
Gold futures ended with slim losses in the domestic market on Wednesday as investors and speculators were cautious over booking fresh positions in the precious metal after the US Federal Reserve pared its record monthly bond buying program for a fifth straight meeting, dimming the appeal of the bullion, which is a hedge against the inflationary risk of monetary stimulus. Fed trimmed QE by USD 10 billion to USD 35 billion and stressed that it is likely to reduce the pace of asset purchases in further measured steps. The central bank also signaled a strong rebound in the world’s biggest economy this quarter and an improvement in the job market, dimming the safe haven appeal of gold. The Fed sees the US economy expanding at a moderate pace, going forward. However, the Fed said that interest rates are likely to remain at low levels for a considerable time even after QE is fully wound up, supporting the outlook for gold as a store of value, curbing losses in the precious metal. The Fed maintained its key benchmark interest rate unchanged near zero. Gold futures may rise today as deepening unrest in Iraq boosts safe haven demand for the bullion while the Fed vowed to keep interest rates at low levels for a considerable time, boosting the demand for the bullion as an alternative asset. Gold futures for August 2014 contract, at MCX, closed at Rs. 26,826 per 10 grams, down by 0.05 per cent, after opening at Rs. 26,787, against the previous closing price of Rs 26,839. It touched an intra-day low of Rs 26,690.
