Gold rises on soft economic data
18/07/2017
Gold futures closed higher in the domestic market on Monday as recent softer economic data raised speculation that the Federal Reserve may be reluctant to raise interest rates quickly.The latest rise in gold prices came as a reading of New York-area manufacturing released Monday showed a retreat in July from a two-year high. A report Friday on consumer prices had showed that inflation in June came in flat, a sign that consumer prices had trouble sustaining its upward momentum. A weaker-than-expected reading for June’s retail sales, which fell 0.2%, also signalled weakness. The latest economic data may be viewed as providing insufficient support for the Fed to lift interest rates at least once more in 2017 and shrink its $4.5 trillion balance sheet—an act that can also serve to tighten economic conditions. Lower rates tend to be supportive for gold, which doesn’t offer a yield.At the MCX, gold futures for August 2017 contract ended at Rs 28117 per 10 grams, up by 0.43 per cent, after opening at Rs 28,050 against a previous close of Rs 27,996. It touched the intra-day high of Rs 28,143.
18/07/2017
Gold futures closed higher in the domestic market on Monday as recent softer economic data raised speculation that the Federal Reserve may be reluctant to raise interest rates quickly.The latest rise in gold prices came as a reading of New York-area manufacturing released Monday showed a retreat in July from a two-year high. A report Friday on consumer prices had showed that inflation in June came in flat, a sign that consumer prices had trouble sustaining its upward momentum. A weaker-than-expected reading for June’s retail sales, which fell 0.2%, also signalled weakness. The latest economic data may be viewed as providing insufficient support for the Fed to lift interest rates at least once more in 2017 and shrink its $4.5 trillion balance sheet—an act that can also serve to tighten economic conditions. Lower rates tend to be supportive for gold, which doesn’t offer a yield.At the MCX, gold futures for August 2017 contract ended at Rs 28117 per 10 grams, up by 0.43 per cent, after opening at Rs 28,050 against a previous close of Rs 27,996. It touched the intra-day high of Rs 28,143.
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