Gold futures end flat as Fed decision eyed
18/06/2014 09:10
Gold futures closed little changed in the domestic market on Tuesday as investors and speculators were cautious over booking fresh positions in the precious metal as the US Federal Reserve began a two-day policy meet. The Fed has rolled back stimulus by USD 10 billion in each of its past four meetings. A decision by the Fed to continue the taper of its QE program may dim the appeal of the bullion, a hedge against the inflationary risk of monetary stimulus. Gains in equities dampened the appeal of gold as an alternative asset, offsetting rising safe haven demand for the bullion amidst the unrest in Iraq. US consumer prices rose at the fastest pace in more than a year in May 2014, raising bets that the Fed may tighten policy sooner than earlier expected, dimming the appeal of gold as a store of value. US consumer price index climbed 0.4 per cent in May 2014 over the previous month. Gold futures may stay subdued today ahead of the US Fed policy decision. Gold futures for August 2014 contract, at MCX, closed at Rs. 26,839 per 10 grams, up by 0.03 per cent, after opening at Rs. 26,775, against the previous closing price of Rs 26,831. It touched an intra-day high of Rs 26,904.
18/06/2014 09:10
Gold futures closed little changed in the domestic market on Tuesday as investors and speculators were cautious over booking fresh positions in the precious metal as the US Federal Reserve began a two-day policy meet. The Fed has rolled back stimulus by USD 10 billion in each of its past four meetings. A decision by the Fed to continue the taper of its QE program may dim the appeal of the bullion, a hedge against the inflationary risk of monetary stimulus. Gains in equities dampened the appeal of gold as an alternative asset, offsetting rising safe haven demand for the bullion amidst the unrest in Iraq. US consumer prices rose at the fastest pace in more than a year in May 2014, raising bets that the Fed may tighten policy sooner than earlier expected, dimming the appeal of gold as a store of value. US consumer price index climbed 0.4 per cent in May 2014 over the previous month. Gold futures may stay subdued today ahead of the US Fed policy decision. Gold futures for August 2014 contract, at MCX, closed at Rs. 26,839 per 10 grams, up by 0.03 per cent, after opening at Rs. 26,775, against the previous closing price of Rs 26,831. It touched an intra-day high of Rs 26,904.
