MCX GOLD TIPS: Gold futures fell in the domestic market on Thursday as investors and speculators exited positions in the precious metal tracking weakness in the Foreign market as a rebound in equities dimmed the investment appeal of the bullion.

Wall Street rallied handsomely on Thu aided by a relief rally in oil, with the Dow Jones Industrial Average surging 1.41%, the Nasdaq Composite climbing 1.97% and S&P 500 rallying 1.67%.

A stronger dollar also curbed the lure for Bullion as an alternative asset. Stronger greenback makes the Gold more expensive for those holding other currencies, thus dimming demand.

However, the losses in Gold were trimmed by speculation that the US Federal Reserve may go cautious on further interest rate hikes amidst universal headwinds, a commodity rout and China slowdown, bolstering the demand for the bullion as a store of value.

Fed Reserve Bank of St. Louis Chief James Bullard said that an energy price rout may dent inflation expectations, tempering speculation of a further interest rate hike by the United State Fed for atleast the next few months.

Gold may trade on a cautious note today ahead of a flurry of US data including retail sales, industrial output, consumer sentiment and producer prices, which may offer further cues over the health of the world’s biggest economy.

At the MCX, Bullion futures for February 2016 contract is trading at Rs 25,637 per 10 gram, down by 0.38% after opening at Rs 25,824, against the previous closing price of Rs 25,735. It touched the intra-day low of Rs 25,591.