Gold Dips On Rise In Global Bond Yield

Gold futures closed lower in the domestic market on Friday driven by a rise in global bond yields, which diminished appetite for precious metals. A steadying U.S. dollar and equity market and mostly upbeat economic data added pressure to gold futures for the session. Fears that central banks in Europe and the U.S., some of the largest buyers of government bonds, my be shifting from a dovish to a more hawkish posture, has jolted government-bond prices lower, delivering a sudden jolt higher to yields, which move inversely to prices. 

Higher yields tend to increase the opportunity cost of purchasing commodities that don’t offer a yield to assets, like bonds, which are seeing yields pick up. At the MCX, gold futures for August 2017 contract ended at Rs 28471 per 10 grams, down by 0.48 per cent, after opening at Rs 28,609 against a previous close of Rs 28,608. It touched the intra-day low of Rs 28,405.

For Quick Trial – 8962000225 ✔
or mail us here: info@ways2capital.com
✆ - 0731-6626222 | Toll Free - 1800-3010-2007
Give a Missed Call for Free Trial - 09699997717
SHARE

Suhani Verma

  • Image
  • Image
  • Image
    Blogger Comment
    Facebook Comment

0 comments: