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Gold dips after Fed minutes hint a June rate hike

By Religare
|

Gold futures fell by 0.89 per cent on Thursday at the domestic markets after US Federal Reserve minutes revealed that an interest rate hike could take place as early as June, causing the dollar to turn higher.

The March meeting concluded with the Fed opening the door to a June rate hike, and the minutes said that "several participants" went on record saying they expected that upcoming economic data would warrant an initial rate increase that month.

 

A stronger dollar reduced the appeal of the commodity as an alternative asset. Stronger greenback makes gold expensive for those holding other currencies thus reducing demand.

At the MCX, Gold futures for June 2015 contract was trading at Rs 26,522 per 10 gram, down by 0.89 per cent after opening at Rs 26,700, against the previous closing price of Rs 26,760. It touched the intra-day low of Rs 26,466 till the trading. (At 12.08 PM today).

Story first published: Thursday, April 9, 2015, 23:00 [IST]
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