Rupee depreciation lifts Gold futures
02/06/2014 09:16
Gold futures ended higher in the domestic market on Friday as the sharp depreciation of the Indian rupee against the US dollar more than offset the losses seen in the precious metal in the overseas market. A weaker rupee against the greenback exerts upward pressure on domestic bullion prices. Gold futures fell in the overseas market as record high stocks dimmed the appeal of the bullion as an alternative asset. Further, technical warnings also weighed heavily on the precious metal. A top Federal Reserve official said that the world’s biggest economy may rebound sharply this quarter after the contraction in Q1, dimming the safe haven demand for gold. San Francisco Federal Reserve President John Williams expects the central bank’s key interest rate to be as high as 2.5 per cent by the end of 2016. Williams expects the Fed to start raising borrowing costs from 2015, dimming the appeal of gold as a store of value. Gold futures may trade on a subdued note today as investors stay cautious ahead of US payrolls data this week. Gold futures for June 2014 contract, at MCX, closed at Rs. 26,863 per 10 grams, up by 0.12 per cent, after opening at Rs. 26,816 against the previous closing price of Rs 26,830. It touched an intra-day high of Rs 26,910.
02/06/2014 09:16
Gold futures ended higher in the domestic market on Friday as the sharp depreciation of the Indian rupee against the US dollar more than offset the losses seen in the precious metal in the overseas market. A weaker rupee against the greenback exerts upward pressure on domestic bullion prices. Gold futures fell in the overseas market as record high stocks dimmed the appeal of the bullion as an alternative asset. Further, technical warnings also weighed heavily on the precious metal. A top Federal Reserve official said that the world’s biggest economy may rebound sharply this quarter after the contraction in Q1, dimming the safe haven demand for gold. San Francisco Federal Reserve President John Williams expects the central bank’s key interest rate to be as high as 2.5 per cent by the end of 2016. Williams expects the Fed to start raising borrowing costs from 2015, dimming the appeal of gold as a store of value. Gold futures may trade on a subdued note today as investors stay cautious ahead of US payrolls data this week. Gold futures for June 2014 contract, at MCX, closed at Rs. 26,863 per 10 grams, up by 0.12 per cent, after opening at Rs. 26,816 against the previous closing price of Rs 26,830. It touched an intra-day high of Rs 26,910.
