Gold prices fell by 0.46 per cent on Wednesday as investors continued to factor in an increased chance of a near-term US interest rate rise. Market players will pay close attention to comments from a number of Fed officials later in the day for further hints on the timing of a US rate hike. Besides the Fed speakers, traders will focus on an advanced read on international trade for April and FHFA home prices.
Gold futures for June 2016 contract, at MCX, were trading at Rs. 29,165 per 10 grams, down by 0.46 per cent after opening at Rs. 29,200 against the previous closing price of Rs. 29,684. It touched the intra-day low of Rs. 29,591 till the trading.
However, a weaker dollar raised the appeal of gold as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies, thus increasing demand.
Gold prices fell as investors continued to factor in an increased chance of a near-term US interest rate rise.
Market players will pay close attention to comments from a number of Fed officials later in the day for further hints on the timing of a US rate hike. Besides the Fed speakers, traders will focus on an advanced read on international trade for April and FHFA home prices.
However, a weaker dollar raised the appeal of gold as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies, thus increasing demand.
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