Gold declines further on stronger dollar

Published: Thursday, September 22, 2011, 11:44 [IST]

Gold futures came under pressure on Thursday as a spike in the U.S. dollar after Fed's announcement of bond-buying programme prompted investors to close off bets in yellow metal.

The decline in the rupee and other major currencies and resulting strength in the dollar have tempered gold's demand as bullion becomes more expensive to non-U.S. buyers.

In US, Fed has decided to replace its short-dated treasury securities with that of long-dated notes to spur economic activity, the decision disappointed investors around the globe who expected another round of stronger stimulus. This led to put upward pressure on dollar turning fall in all other major currencies.

Due to the fall in rupee, the physical buying of gold also tempered as the landed cost of gold is quoted in dollars.

At 11:34 am, the most-active gold for October delivery on the Multi Commodity Exchange (MCX) opened at Rs 28,030 per 10 grams and was trading in the range of Rs 27,928 – Rs 28,934 per 10 grams.

And, gold for far month April delivery opened at Rs 28,847 per 10 grams and was trading in the range of Rs 28,848 – Rs 28,883 per 10 grams.

GoodReturns.in

Story first published: Thursday, September 22, 2011, 11:44 [IST]

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