http://www.researchvia.com/ultra-commodity/
MCX GOLD TIPS | Gold futures ended on a quiet note in the domestic market on Monday but advanced in the overseas market as downbeat US housing and manufacturing data signaled a cooling recovery in the world’s biggest economy, raising question marks over the pace of impending policy tightening by the US Federal Reserve.

While a Chicago Business Index slid into contraction in November, US pending home sales climbed less than forecast in October following declines over the past two months, raising concerns over the economy’s ability to withstand sustained pace of policy tightening.

While the Fed is most likely to raise borrowing costs for the first time in almost a decade, in December, it may go easy on subsequent rate hikes, with the pace of tightening likely to be gradual, bolstering gold’s appeal as a store of value.

Caution ahead of key economic events this week including the United State jobs data and the European Central Bank (ECB) policy meet kept traders on the sidelines.

A strengthening dollar has also reduced the appeal of the bullion as an alternative asset. Stronger greenback makes Bullion more expensive for those holding other currencies, thus dimming demand.

Gold may trade on a flat note today as traders eye key US factory data which may offer fresh cues over the health of the world’s biggest economy. At the MCX, Gold futures for Dec 2015 agreement closed at Rs 25,069 per 10 gram, up by 0.04 per cent after opening at Rs 24,994, against the last closing price of Rs 25,059. It touched the intra-day high of Rs 25,115.