Commodity Updates –Gold futures ended with slim losses in the domestic market on Tuesday as investors and speculators resorted to profit booking in the precious metal, at existing levels, after a stellar rally in the previous session when prices rose over 3 per cent as heightened worries over global economic growth bolstered gold’s safe haven appeal. Gold Bulls have been resurgent in recent sessions as plunging global equities and a worsening oil rout bolstered the investment appeal of the bullion. An appreciation in the rupee against the dollar more than offset the gains witnessed in the precious metal in the overseas market. Stronger rupee against the greenback tends to exert upward pressure on domestic bullion prices. Gold futures rose in the overseas market on Tuesday as falling oil prices fueled an exit from equities, forcing investors to seek shelter in the safety of the yellow metal. Wall Street ended lower on Tuesday with benchmark S&P 500 languishing near the lowest level since April 2014 with the Nasdaq Composite on the cusp of a bear market. The focus has now shifted to Fed Chair Janet Yellen’s testimony to the Congress on Wednesday in which she may offer some cues over when the Fed is likely to raise interest rates next following a maiden lift-off in borrowing costs in almost a decade in December. Gold futures may trade on a cautious note today as traders eye Yellen’s Congressional testimony.

Investors were reluctant to make any major trades before Yellen's semi-annual testimony on Wednesday in front of the U.S. House of Representative's Financial Services Committee.


Yellen will make her first public appearance in 55 days and her first since the Fed kick started its first tightening cycle in nearly a decade with its historic decision in December to abandon a seven-year zero interest rate policy.