Gold futures trades lower on Thursday as the market agents stared ahead to the publication of key US data at a later in the session for further guidance on the strong economy and the future trajectory of monetary policy.
Gold added the losses during the night as strength in the dollar and stocks sturdier, US financial data dropped the metal’s appeal as a hedge, prompting new exits from SPDR the top bullion-backed fund.
On the Comex New York, gold futures for February delivery shed $2.70, or 0.22%, to trade at $1,208.00 a troy ounce.
Spot gold eased 0.3 per cent to $1,206.80 an ounce. The metal fell 0.7 per cent in the previous session, ending a three-day winning streak.
The expectations of increased rates of borrow in the future is deemed bearish for gold, as the precious metal is striving to compete with the assets that support performance when interest rates are rising.
But shares have regained certain strength due to better US data and a high, for now, to falling oil prices.
Asian stocks gained on Thursday after upbeat US employment data tempered investor risk aversion that had pummelled global equities this week, while the euro held near a nine-year low. South Korea’s Kospi climbed 0.7%. Tokyo’s Nikkei was up 0.9%. And 30-share benchmark BSE Sensex rose 280 points.
In reflects of investor sentiment, holdings in SPDR Gold Trust, fell 0.42 percent to 704.83 tonnes on Wednesday, its lowest level since late 2008.
Input streams and the bottom outlet likely to influence prices because of the size of their holdings.
As the rupee firmly in domestic market, a decline show in gold prices on MCX market. MCX gold price has come down to Rs 27,000. Silver is trading below Rs 1 per cent to 37,400.
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