Gold Drops Amid fears Over Hawkish Fed Minutes
Gold prices fell by 0.19 per cent on Wednesday as market players looked ahead to minutes of the Federal Reserve’s April policy meeting, which many feared could be more hawkish than the statement. Investors will be focusing on minutes of the Federal Reserve’s April policy meeting due on Wednesday, for some clarity on where the US central bank stands on its path toward rate hikes. The Fed left interest rates unchanged following its meeting on April 27 and issued a statement implying it was in no hurry to raise rates. Gold futures for June 2016 contract, at MCX, were trading at Rs. 29,991 per 10 grams, down by 0.19 per cent after opening at Rs. 30,041 against the previous closing price of Rs. 30,049. It touched the intra-day low of Rs. 29,970 till the trading.
Further, 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.
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