Gold glitters on safe-haven demand

Gold glitters on safe-haven demand

31/01/2017 14:06

Gold futures were trading higher during afternoon trade in the domestic market on Tuesday as investors and speculators extended their positions in the precious metal as demand for safe-haven emerged on weak US dollar amid political uncertainty created by US President Trump’s move to ban people from 7 Muslim-majority countries, and by elections in Europe.

Donald Trump’s move mounted criticism and protests in major American cities and some nervousness before the Federal Reserve’s 2-day meeting on monetary policy starting today.

Fed raised interest rates in December, at that time it signaled as many as 3 rises in 2017 as the Trump administration takes over with promises to boost growth via tax cuts, spending and deregulation.

However, gains were curbed as many Asian markets were closed today due to holiday for the Lunar New Year.

At the MCX, gold futures for February 2017 contract is trading at Rs 28640 per 10 grams, up by 0.41 per cent, after opening at Rs 28570, against a previous close of Rs 28524. It touched the intra-day high of Rs 28675 (at 13:54 hours).

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