Gold Down As Fed Rate Hike Likely

Posted By: Religare
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Gold futures closed lower in the domestic market on Thursday as the metal saw pressure as a round of U.S. economic data did little to sway markets from expectations for an interest-rate hike later this month, yet still left next year's course for rates unclear. Progress on tax changes in the U.S. remains a key market focus as well.

Gold Down As Fed Rate Hike Likely

Investors also eyed data showing a monthly jump in U.S. consumer confidence to its highest level in 17 years, which backs the Fed argument for further rate increases. Higher interest rates tend to boost the dollar and push bond yields up, putting pressure on gold prices by increasing the opportunity cost of holding nonyielding bullion.

At the MCX, gold futures for December 2017 contract ended at Rs 29060 per 10 grams, down by 0.56 per cent, after opening at Rs 29,205 against a previous close of Rs 29,223. It touched the intra-day low of Rs 28,950.

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