Gold dips as US dollar rebounds
04/07/2017
Gold futures closed lower in the domestic market on Monday as the U.S. dollar spent much of the session rebounding from last week’s sharp loss and gains in U.S. equities dulled investment demand for the precious metal. A steadying U.S. dollar and equity market and mostly upbeat economic data added pressure to gold futures for the session. Fears that central banks in Europe and the U.S., some of the largest buyers of government bonds, may be shifting from a dovish to a more hawkish posture, has jolted government-bond prices lower, delivering a sudden jolt higher to yields, which move inversely to prices. Higher yields tend to increase the opportunity cost of purchasing commodities that don’t offer a yield to assets, like bonds, which are seeing yields pick up. At the MCX, gold futures for August 2017 contract ended at Rs 28085 per 10 grams, down by 1.24 per cent, after opening at Rs 28,421 against a previous close of Rs 28,439. It touched the intra-day low of Rs 28,067.
04/07/2017
Gold futures closed lower in the domestic market on Monday as the U.S. dollar spent much of the session rebounding from last week’s sharp loss and gains in U.S. equities dulled investment demand for the precious metal. A steadying U.S. dollar and equity market and mostly upbeat economic data added pressure to gold futures for the session. Fears that central banks in Europe and the U.S., some of the largest buyers of government bonds, may be shifting from a dovish to a more hawkish posture, has jolted government-bond prices lower, delivering a sudden jolt higher to yields, which move inversely to prices. Higher yields tend to increase the opportunity cost of purchasing commodities that don’t offer a yield to assets, like bonds, which are seeing yields pick up. At the MCX, gold futures for August 2017 contract ended at Rs 28085 per 10 grams, down by 1.24 per cent, after opening at Rs 28,421 against a previous close of Rs 28,439. It touched the intra-day low of Rs 28,067.
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