Gold
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.
Outlook
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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