Gold closes higher on strong global cues

Posted By: Religare
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Gold closes higher on strong global cues
Gold futures ended higher in the domestic market on Tuesday as investors kept an eye on the release of the Federal Reserve's June policy meeting minutes on Wednesday, with many hoping for clues on monetary stimulus programs and rate-hike timetables.

Loose monetary policies tend to bolster gold's appeal as a hedge to weaker currencies. Moreover, weaker dollar raised the appeal of the bullion as an alternative asset. Weaker dollar makes the precious metal cheaper for those holding other currencies, thus increasing demand.

Gold futures may trade higher ahead of the release of the Federal Reserve's June policy meeting minutes. Gold futures for August 2014 contract, at MCX, closed at Rs. 27,519 per 10 grams, up by 0.11 per cent, after opening at Rs. 27,507, against the previous closing price of Rs 27,490. It touched an intra-day high of Rs 27,629.

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Read more about: mcx, gold futures
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