Gold futures continue downward journey on weak physical demand

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Gold futures continue downward journey on weak physical demand
Gold futures fell in the domestic market on Friday as investors and speculators exited positions in the precious metal tracking a bearish trend in the overseas market amid concerns that a rally in prices in recent sessions may curb physical demand for the precious metal in Asia.

Further, better than expected US economic data which showed a faster expansion in manufacturing this month and a dip in unemployment claims last week, eased concerns over the health of the world's biggest economy, raising fears that the Fed may continue paring QE, dimming the appeal of the bullion, which is a hedge against the inflationary risk of monetary stimulus.

Gold futures for April 2014 contract, at MCX, is trading at Rs. 29,830 per 10 grams, down by 0.17 per cent, after opening at Rs. 29,865, against the previous closing price of Rs 29,882. It touched an intra-day low of Rs 29,820. (At 11:30 AM).

Dion Global Solutions Ltd.

Read more about: gold, gold futures, qe3 tapering
Story first published: Friday, February 21, 2014, 12:54 [IST]
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