Gold Dips On Solid US Jobs Data

Gold futures closed lower in the domestic market on Friday as a relatively solid job-market snapshot for June backed expectations for higher U.S. interest rates this year.The U.S. nonfarm-payrolls data brought negative news for gold traders as the number from the outset looked acceptable.

The U.S. Federal Reserve is contemplating its efforts to normalize policy. In a Friday’s report, the central bank forecasted a gradual increase in interest rates and the imminent wind down of its balance sheet. The European Central Bank, meanwhile, has been signaling that it is getting ready to wind down its stimulus efforts after years of aggressive bond buying.

The collective shift in sentiment by central bankers has rocked bonds, yanking prices lower and sending global bond yields surging. That’s proven to be a negative factor for gold, which doesn’t offer a yield.

At the MCX, gold futures for August 2017 contract ended at Rs 27782 per 10 grams, down by 1.19 per cent, after opening at Rs 28,050 against a previous close of Rs 28,116. It touched the intra-day low of Rs 27,724.

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Suhani Verma

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