MCX GOLD TIPS | Gold rallies on ECB stimulus boost


Posted December 4, 2015 by anikSingh

MCX GOLD TIPS | Gold futures ended higher in the Asian market on Thursday as investors and speculators booked fresh positions in the precious metal tracking a bullish trend in the foreign market

 
MCX GOLD TIPS | Gold futures ended higher in the Asian market on Thursday as investors and speculators booked fresh positions in the precious metal tracking a bullish trend in the foreign market as a weaker dollar boosted the appeal of the bullion as an alternative asset. Weaker greenback makes bullion cheaper for those holding other currencies, thus bolstering demand.

Further, the Euro Central Bank (ECB) unveiled a boost to its asset purchase program and slashed its deposit rate to shore up the 19-member Euro area worth, bolstering the appeal of Gold, a hedge against the inflationary risk of monetary One after one.

The ECB said that it will extend its bond buying program by six months until at least March 2017 at the present pace of 60 billion euros a month and will broaden its asset purchases by including local and regional debt. The deposit rate was reduced by 10 basis points to -0.3 per cent.

However, speculation of a Fed interest rate hike in Dec curbed the lure for Bullion as a store of value, trimming gains in the bullion.

Fed Chair Janet Yellen signaled that conditions for increasing borrowing costs in the world’s biggest economy had been met, bolstering the case for a lift-off in interest rates by the Federal at its upcoming two-day policy meet on December 15-16.

Yellen called for the urge to raise interest rates sooner than After, with the pace of tightening likely to be gradual.

Gold may trade lower today amid caution ahead of United State jobs data which may further press the case for monetary tightening.

At the MCX, Gold futures for December 2015 agreement ended at Rs 24,937 per 10 gram, up by 0.39 per cent after opening at Rs 24,804, against the last closing price of Rs 24,840. It touched the intra-day high of Rs 25,060.
-- END ---
Share Facebook Twitter
Print Friendly and PDF DisclaimerReport Abuse
Contact Email [email protected]
Issued By aniksingh
Phone 9977785000
Business Address AB Road, Bhawarkuan Office No. 301- 315 Sai Ram Plaza
63 Mangal Nagar, Indore
Country India
Categories Business , Finance , Services
Last Updated December 4, 2015