Life @ TradeIndia Research

Tuesday, 30 August 2016

Bullion Market Tips, MCX Outlook


On Monday, spot gold prices rose by 0.16 percent to close at $1323 per ounce as prices rebounded from a near five-week low on account of weak dollar, shrugging off earlier pressure by top Federal Reserve officials' comments fuelling speculation that U.S. interest rates would rise sooner rather than later.

Bullion Market Tips Speaking at a meeting of leading central bankers in Jackson Hole, Wyoming, Fed Chair Janet Yellen said on Friday that an improvement in the economy had boosted the case for another rate rise, while Vice Chair Stanley Fischer said the U.S. central bank was still on track to lift rates this year.

The CME Group's FedWatch tool showed the market pricing in more than a 30 percent chance of a hike in September, up from 18 percent before Yellen and her deputy Fischer spoke.

On the MCX, gold prices rose marginally by 0.25 percent to close at Rs.31255 per 10 gms.


On an intraday basis, we expect gold prices to trade lower as markets expect more chance of a rate hike in September meeting after comments from Janet Yellen and Stanley Fischer. Besides, profit booking at higher levels will act as a negative factor for gold prices.

On the MCX, gold prices are expected to trade lower today. International markets are trading flat today.

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