Gold futures tad higher ahead of US jobless claims data

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Gold futures rose marginally in the domestic market on Thursday tracking firm cues from the overseas market amid speculation that unemployment claims in the US climbed last week, delaying a possible move by the US Federal Reserve to taper QE in the near-term, improving the outlook for the precious metal, which is a hedge against the inflationary risk of monetary stimulus.

A weaker dollar also boosted the demand for the precious metal as an alternative asset. A weaker greenback makes the bullion cheaper for those holding other currencies, thus bolstering demand.

However, continued investment outflows in bullion backed exchange traded products curbed gains in the precious metal. Assets in the SPDR Gold Trust fell to the lowest level since February 2009 at 910.53 metric tons on Wednesday

Gold futures for October 2013 contract, at MCX, were trading at Rs. 27,700 per 10 grams, up by 0.08 per cent after opening at Rs. 27,755 against the previous closing price of Rs. 27,677. It touched an intra-day high of Rs 27,816. (At 11:19 AM).

Read more about: gold futures
Story first published: Thursday, August 8, 2013, 12:40 [IST]
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