Gold Updates – Gold Rises Ahead of Friday US jobs
Gold prices rose by 0.28 per cent on Thursday with investors cautious ahead of the end of the week jobs report that will provide clarity on the prospects for Fed rate hikes going forward. A mixed bag of US economic data provided few indications on the long-term path of the economy, potentially leaving the Federal Reserving at an impasse while it weighs the timing of its next interest rate hike. Gold futures for June 2016 contract, at MCX, were trading at Rs. 30,074 per 10 grams, up by 0.28 per cent after opening at Rs. 30,120 against the previous closing price of Rs. 29,991. It touched the intra-day high of Rs. 30,149 till the trading.
However, a stronger dollar reduced the appeal of gold as an alternative asset. Stronger greenback makes the bullion expensive for those holding other currencies, thus reducing demand.