Rupee appreciation weighs on Gold futures

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Rupee appreciation weighs on Gold futures
Gold futures ended lower in the domestic market on Wednesday as a stronger rupee against the US dollar more than offset the gains seen in the precious metal in the overseas market. Stronger rupee against the greenback exerted downward pressure on domestic bullion prices.

Gold futures rose in the overseas market on Wednesday as weakness in equities boosted the appeal of gold as an alternative asset.

Washington-based lender World Bank on Tuesday cut its forecasts for growth in the world economy this year as emerging markets such as China slow, boosting the safe haven demand for the bullion.

The World Bank cut its estimates for global economic growth to 2.8 per cent in 2014 from an earlier expected 3.2 per cent expansion. For 2015, the global economic growth estimate of 3.4 per cent was left unchanged.

Gold futures may trade on a cautious note ahead of US jobless claims and retail sales data to be released today.

Gold futures for August 2014 contract, at MCX, closed at Rs. 26,073 per 10 grams, down by 0.25 per cent, after opening at Rs. 26,189, against the previous closing price of Rs 26,139. It touched an intra-day low of Rs 25,956.

Dion Global Solutions

Read more about: gold futures, world bank, appreciation
Story first published: Thursday, June 12, 2014, 12:30 [IST]
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