Thursday, 29 August 2013

Safe haven demand lifts MCX Gold futures

Gold futures were trading higher in the domestic market on Today as rising speculation of an imminent military strike by Western nations on Syria boosted the safe haven demand for the precious metal. The US along with allies was preparing to launch a military strike on Syria as western nations condemned the use of chemical weapons against civilians by the country’s government. Investors are concerned that the conflict in Syria may escalate and spread across the Middle East region, inviting caution and boosting safe haven inflows into gold. A slump in pending home sales in the US signaled a cooling housing market in the world’s biggest economy, boosting the case for the Federal Reserve to maintain its stimulus program next month, improving the demand outlook for the bullion, a hedge against the inflationary risk of monetary stimulus. Gold futures for October 2013 contract, at MCX, were trading at Rs. 33,668 per 10 grams, up by 0.79 per cent after opening at Rs. 33,564, against the previous closing price of Rs. 33,405. 

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