Fed rate hike fears weighs on gold prices

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Fed rate hike fears weighs on gold prices
Gold futures ended lower in the domestic market on Thursday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market amid lingering fears that the US Federal Reserve may start raising interest rates sooner than earlier anticipated, dimming the appeal of the bullion as a store of value.

Caution persisted ahead of US retail sales data due today which may show a surge in sales in the month of August, boosting the case for early monetary tightening.

Investors shrugged off weak jobless claims data which showed a surge in applications to a two-month high as analysts warned of distortions in the data amid the Labour Day holiday.

Gold futures may continue the downward journey today ahead of US retail sales data.

Gold futures for October 2014 contract, at MCX, closed at Rs. 26,986 per 10 grams, down by 0.71 per cent, after opening at Rs. 27,200, against the previous closing price of Rs 27,179. It touched an intra-day low of Rs 26,953.

Read more about: gold, mcx
Story first published: Friday, September 12, 2014, 12:30 [IST]
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