Gold futures shine on renewed safe haven appeal
13/06/2014 09:46
Gold futures ended higher in the domestic market on Thursday tracking a firm trend in the overseas market as investors and speculators booked fresh positions in the precious metal as an escalation of violence in Iraq boosted the safe haven demand for the yellow metal. Further, a decline in equities boosted the appeal of gold as an alternative asset. A slower than expected rise in US retail sales in May and a rise in unemployment claims signaled a cooling recovery in the world’s biggest economy, raising bets that the US Federal Reserve may refrain from accelerating the pace of QE taper, bolstering the appeal of the bullion, a hedge against the inflationary risk of monetary stimulus. Gold futures may continue the upward journey today as tensions in Iraq and signs of a US economic slowdown boost safe haven appeal. Gold futures for August 2014 contract, at MCX, closed at Rs. 26,330 per 10 grams, up by 0.99 per cent, after opening at Rs. 26,077, against the previous closing price of Rs 26,073. It touched an intra-day high of Rs 26,360.
13/06/2014 09:46
Gold futures ended higher in the domestic market on Thursday tracking a firm trend in the overseas market as investors and speculators booked fresh positions in the precious metal as an escalation of violence in Iraq boosted the safe haven demand for the yellow metal. Further, a decline in equities boosted the appeal of gold as an alternative asset. A slower than expected rise in US retail sales in May and a rise in unemployment claims signaled a cooling recovery in the world’s biggest economy, raising bets that the US Federal Reserve may refrain from accelerating the pace of QE taper, bolstering the appeal of the bullion, a hedge against the inflationary risk of monetary stimulus. Gold futures may continue the upward journey today as tensions in Iraq and signs of a US economic slowdown boost safe haven appeal. Gold futures for August 2014 contract, at MCX, closed at Rs. 26,330 per 10 grams, up by 0.99 per cent, after opening at Rs. 26,077, against the previous closing price of Rs 26,073. It touched an intra-day high of Rs 26,360.
