Gold futures extend gains on global cues

Gold futures extend gains on global cues
Gold futures ended with slim gains in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market.

A weaker dollar boosted the appeal of gold as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand.

Lingering tensions in Iraq amid sectarian violence boosted the safe haven demand for the precious metal.

The biggest contraction in the world's biggest economy in five years last quarter and a slump in US durable goods orders signaled weakness in the US economy, boosting the demand for gold as a safe haven, while raising bets that the US Federal Reserve may continue with its easy money policy, bolstering the appeal of gold as a store of value.

Gold futures may trade on a cautious note today ahead of the US jobless claims data which may offer further cues over the US job market progress.

Gold futures for August 2014 contract, at MCX, closed at Rs. 27,751 per 10 grams, up by 0.07 per cent, after opening at Rs. 27,700, against the previous closing price of Rs 27,731 It touched an intra-day high of Rs 27,820.

Dion Global Solutions

Read more about: gold futures, overseas market, mcx
Story first published: Thursday, June 26, 2014, 12:50 [IST]
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