Friday, 27 September 2013

Fed QE taper fears drag down MCX Gold futures

MCX Gold futures fell in the domestic market on Yesterday as investors and speculators exited positions in the precious metal tracking weak cues from the overseas market as robust US data signaled a pickup in the world’s biggest economy, boosting the case for the US Federal Reserve to start tapering its USD 85 billion monthly bond buying program from next month, dimming the appeal of the bullion, which is a hedge against the inflationary risk of monetary stimulus. Data on Thursday showed an unexpected decline in the number of Americans filing for jobless benefits and a faster expansion in the US economy in Q2, reducing the need for record stimulus.
Gold futures for October 2013 contract, at MCX, closed at Rs. 29,865 per 10 grams, down by 1.16 per cent after opening at Rs. 30,156, against the previous closing price of Rs. 30,215. It touched an intra-day low of Rs 29,757

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