Prices of gold futures increased slightly higher on Tuesday, but still below the key level of $ 1.200 as investors looked ahead to the US non-farm payrolls report on Friday, April in search of clues as to when the Federal reserve may raise interest rates.
Spot gold was little changed at $1,187 an ounce, the metal gained 0.8 percent on Monday. On the Comex, gold futures for June delivery tacked on 60 cents, or 0.05%, to trade at $1,187.40 a troy ounce.
A strong US non-farm payrolls report could lead the Federal Reserve to raise interest rates soon, a move seen by the investors as dents demand for bullion, which pay no interest. Speculation about the moment of a rate hike has remained markets on edge.
The dollar index, which measures the strength of the greenback versus a trade-weighted basket of six currencies, rose 0.25% to trade at 95.83 early Tuesday.
The US dollar recovered some ground amid signs that the US economy may be stabilizing after a recent bout of weakness.
The Indian rupee erased all the morning losses against the dollar and closed little changed at 63.44, down 0.03% from its previous close of 63.42.
Amid a weak trend overseas gold for delivery in June eased by Rs 53, or 0.20%, to Rs 26,815 per 10 grams.
“The market will remain focused on the number of US payrolls that will be published this week could be seen a feeble impression push gold above $ 1,200 an ounce.” commodity experts said.
For commodity market tips, MCX live tips, Gold-Silver prices and trading market latest news & updates with 100McxTips, follow us on Twitter @100mcxtips and Like on Facebook. And to contact the reporter on this story email at firstname.lastname@example.org or Call: +91-761-4012307