Gold futures closed lower in the domestic market on Wednesday tracking weak cues from the overseas market as the decreasing likelihood of a US led military strike against Syria dimmed the safe haven appeal of the precious metal. US President Barack Obama postponed a vote on taking military action against Syria as policymakers await a diplomatic solution to the conflict after Syria agreed to a Russian proposal of giving up its stockpile of chemical weapons. Meanwhile, investors are staying cautious ahead of the US Federal Reserve’s two-day policy meet next week where the central bank will decide whether to start reducing its USD 85 billion monthly bond buying program. Gold tends to benefit from ultra-loose monetary policies, given that it is a hedge against the inflationary risk of monetary stimulus. Gold futures for October 2013 contract, at MCX, closed at Rs. 30,682 per 10 grams, down by 0.23 per cent after opening at Rs. 30,911, against the previous closing price of Rs. 30,753. It touched an intra-day low of Rs 30,442.
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