Rupee appreciation weighs on Gold futures
20/06/2014 09:03
Gold futures closed lower in the domestic market on Thursday as a sharp appreciation in the Indian rupee against the US dollar more than offset the gains seen in the precious metal in the overseas market. Stronger rupee against the greenback exerted downward pressure on domestic bullion prices. Gold futures rose in the overseas market after the US Federal Reserve signaled that short-term interest rates will likely remain near record low levels for a while yet, boosting the demand for gold as a store of value. A weaker dollar also boosted the demand for gold as an alternative asset. Rising concerns over Iraq boosted the safe haven demand for the bullion. US President Barack Obama said that he is sending 300 US military advisors to Iraq in a bid to help the Iraqi army stem insurgency. Gold futures may fall today as robust US jobless claims data signaled an improving US economic outlook, dimming the safe haven demand for the bullion. Gold futures for August 2014 contract, at MCX, closed at Rs. 27,611 per 10 grams, down by 0.77 per cent, after opening at Rs. 26,827, against the previous closing price of Rs 26,826. It touched an intra-day low of Rs 26,800.
20/06/2014 09:03
Gold futures closed lower in the domestic market on Thursday as a sharp appreciation in the Indian rupee against the US dollar more than offset the gains seen in the precious metal in the overseas market. Stronger rupee against the greenback exerted downward pressure on domestic bullion prices. Gold futures rose in the overseas market after the US Federal Reserve signaled that short-term interest rates will likely remain near record low levels for a while yet, boosting the demand for gold as a store of value. A weaker dollar also boosted the demand for gold as an alternative asset. Rising concerns over Iraq boosted the safe haven demand for the bullion. US President Barack Obama said that he is sending 300 US military advisors to Iraq in a bid to help the Iraqi army stem insurgency. Gold futures may fall today as robust US jobless claims data signaled an improving US economic outlook, dimming the safe haven demand for the bullion. Gold futures for August 2014 contract, at MCX, closed at Rs. 27,611 per 10 grams, down by 0.77 per cent, after opening at Rs. 26,827, against the previous closing price of Rs 26,826. It touched an intra-day low of Rs 26,800.
