Gold futures continue downward journey on US stimulus doubts

Posted By: Religare
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Gold futures continue downward journey on US stimulus doubts
Gold futures fell in the domestic market on Monday as investors and speculators exited positions in the precious metal amid rising bets that the US Federal Reserve may start tapering its record USD 85 billion monthly bond buying program from December, dimming the appeal of the bullion, a hedge against the inflationary risk of monetary stimulus.

The better than expected jobs data last month fuelled concerns over Fed stimulus taper this month. Federal Reserve Bank of Philadelphia President Charles Plosser saw quicker economic growth in 2014 and a strengthening job market, reiterating that Friday's job numbers were positive and that the Fed should start reducing stimulus.

Gold futures for February 2014 contract, at MCX, were trading at Rs. 28,922 per 10 grams, down by 0.11 per cent after opening at Rs. 28,921, against the previous closing price of Rs 28,954. It touched an intra-day low of Rs 28,842. (At 11:02 AM)

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