Prices of gold futures opened between small gains and losses in trading on Monday, supported by the uncertainty after Brexit vote in Britain even though the equity markets rallied on the back of upbeat US jobs data.
Gold for August delivery on the Comex Exchange rose to a session high of $1,376.50 a troy ounce. It last stood at $1,356.10, down $2.25, or 0.17%.
Prices of Spot gold, which hit a low of $1,335.68 in the wake of Friday’s better-than-expected U.S. jobs data, touched a high of $1,374.71 an ounce early Monday.
The vote from Britain to leave the European Union last month has been increased the urgent need by central banks around the world to ease monetary policy in the short term at offsetting the negative economic impact of the Brexit vote.
The BoE could potentially reduce borrowing costs and add to their asset purchase program when meeting this week.
Meanwhile in Japan, Prime Minister Shinzo Abe in a position of a fresh tax incentive package after his government coalition won a landslide victory in the Senate on Sunday.
firmer grip of the coalition means legislators can more easily pass a larger fiscal stimulus package to stimulate the economy. that a stimulus package of at least 10 trillion yen ($ 97.9 million) be expected.
Share of the Asian markets enjoyed a relief rally on Monday due to employment data US optimistic reduce the immediate concerns over the health of the world’s largest economy, although long-term consequences of Brexit remained sovereign yields near record lows .
US employment growth climbed in June as manufacturing jobs increased more evidence that the economy has picked up speed after a quiet first quarter, but tepid wage growth could see the Fed remain wary about hiking interest rates.
The gold futures contract traded on the Multi Commodity Exchange has slipped Rs 87 to Rs 31,632 per 10 gm.
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