MCX Gold futures for August spurt sharply today on ideas that the Fed is in no hurry to cutback on its asset purchases. The metal shot up near $1300 per ounce in Asian trades as the dollar slipped and equities rallied. The yellow metal had consolidated around $1250 per ounce earlier in the week. Gold had eased after a strong US non-farm payrolls data on Friday but has added impressive gains as prices managed to stay above $1200 per ounce. COMEX Gold futures currently trade at $1289.60, up $42.20 per ounce on the day.
Gold futures shot up in tune with the Asian stocks after the US Federal Reserve's policy meeting minutes showed officials were split on the future of the central bank's stimulus program. About half the Fed officials believe the central bank should end its $85 billion-a-month bond-buying program by the end of this year, suggesting the policy makers are divided on the timing of the coming wind-down of the program. Many other participants anticipated that it likely would be appropriate to continue purchases into 2014, the minutes from the June 18-19 meeting said.
Gold jumped after this, which fanned hopes that the easy money measure wouldn't be removed sooner than expected. Gold has benefited from the Fed's stimulus program, as many traders bought the haven asset to protect against perceived risks like higher inflation and a weaker US dollar. Now, these traders worry gold prices will struggle in the absence of the supportive measure.
The US dollar slipped after the FOMC minutes. The currency was supported after the US non-farm payroll comes in much stronger than expected, with 195,000 new jobs created in June. But the situation seems to have turned around as the greenback was sent to a near three week low against the Euro amid a highly volatile trading action in Asia.
The physical demand for gold remains in a decent shape and the recent price destruction is reportedly bringing in good buying from retail investors and central banks in emerging countries. The MCX Gold managed to hold on above Rs 26000 per 10-gram levels in yesterday and sprinted in early moves today. The counter quotes at Rs 261816, up Rs 713 per 10 grams or 2.73% on the day with 4.90% increase in the open interest.
Gold futures shot up in tune with the Asian stocks after the US Federal Reserve's policy meeting minutes showed officials were split on the future of the central bank's stimulus program. About half the Fed officials believe the central bank should end its $85 billion-a-month bond-buying program by the end of this year, suggesting the policy makers are divided on the timing of the coming wind-down of the program. Many other participants anticipated that it likely would be appropriate to continue purchases into 2014, the minutes from the June 18-19 meeting said.
Gold jumped after this, which fanned hopes that the easy money measure wouldn't be removed sooner than expected. Gold has benefited from the Fed's stimulus program, as many traders bought the haven asset to protect against perceived risks like higher inflation and a weaker US dollar. Now, these traders worry gold prices will struggle in the absence of the supportive measure.
The US dollar slipped after the FOMC minutes. The currency was supported after the US non-farm payroll comes in much stronger than expected, with 195,000 new jobs created in June. But the situation seems to have turned around as the greenback was sent to a near three week low against the Euro amid a highly volatile trading action in Asia.
The physical demand for gold remains in a decent shape and the recent price destruction is reportedly bringing in good buying from retail investors and central banks in emerging countries. The MCX Gold managed to hold on above Rs 26000 per 10-gram levels in yesterday and sprinted in early moves today. The counter quotes at Rs 261816, up Rs 713 per 10 grams or 2.73% on the day with 4.90% increase in the open interest.
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