Gold Rises Marginally As Dollar Drops

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Gold prices rallied by 1 per cent, after the dollar dropped against the Euro and a host of other currencies, after productivity data in the US was lower than expected.

The precious metal was last trading at $1,360.60 an ounce. In India gold at the MCX in the futures market also saw some gains, following a rise in the international markets.

Gold Rises Marginally As Dollar Drops
Earlier gold had dropped to a new 1-week low, after worries that the US Fed would once again start hiking rates this year. This was after the US reported decent employment gains for the month.

Gold rates in India have been on a roll, with gains of almost 30 per cent in just 1 year. Since the start of the year gold prices have rallied almost 20 per cent in trade.

There are worries that gold rates would dip in India and across the globe, if the US Federal Reserve hikes interest rates in the US.

The US Jobs data came in at very health levels and this led to worries that the US central bank would hike interest rates. However, the productivity levels failing, once again raising question mark over the hike.

An increase in interest tends to wean away investors from gold to fixed interest bearing instruments. This does not augur well for gold prices in particular.

Read more about: gold, dollar
Story first published: Wednesday, August 10, 2016, 14:21 [IST]
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