Gold extended fall for a second straight trading session Tuesday after the dollar strengthened against other currencies and on fear that Federal Reserve is set to raise interest rate this year, said analysts.
Prices of the yellow metal were under pressure as strong dollar against other currencies dents inventors' appetite for dollar denominated commodities, said analysts.
At 10:40AM dollar index, which measures the strength of greenback against its six major trading partners, jumped 0.06% to 97.53.
Gold prices were also under pressure as investors feared that the Federal Reserve likely to hike interest rate in September following upbeat jobs data, said analysts.
Last week, the Federal Reserve reiterated its resolve to hike rates later this year as the economy was poised for expansion and labour market was expected to improve further.
The central bank said it was seeing "solid" job gains and maintained its view that economic activity was expanding "moderately", with the risks to the outlook "nearly balanced".
"Growth in household spending has been moderate and the housing sector has shown additional improvement; however, business fixed investment and net exports stayed soft. The labour market continued to improve, with solid job gains and declining unemployment," FOMC statement said.
The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labour market and is reasonably confident that inflation will move back to its 2% objective over the medium term.
United States jobless claims came at 267,000 for the week ended Jul 24 compared to analysts' estimate of 270,000 and 255,000 a week ago, a government data showed.
While, US gross domestic product annualized at 2.3% in second quarter compared to upward revision of 0.6% a quarter ago, a government data showed.
Prices of the gold were also down as Goldman Sachs Group reiterated a forecast that prices may drop 9% below $1,000 an ounce and before American data that may help indicate when US policy makers will raise interest rates.
At 10:40AM gold for October delivery slipped 0.59% to Rs 24,775 per 10 grams on the Multi-Commodity Exchange (MCX).
No comments:
Post a Comment