Today, Gold futures were trading with little losses during noon trade in the local market as investors resorted to a cautious stance ahead of the release of the FOMC minutes in which the US Federal may offer cues over the possible timing to lift interest rates further after a maiden lift-off in borrowing costs since 2006 in Dec.
The Fed is in ‘wait and watch’ mode as it gauges the potential impact of ongoing world wide headwinds including a China slowdown & a commodity slump that have triggered heightened volatility in financial markets, on the world’s largest economy, before undertaking further interest rate tightening. Gold, a non-interest bearing asset tends to benefit from an ultra-low interest rate environment.
MCX : April 2016 contract for Gold futures is trading at Rs 28,876 per 10 gms, down by 0.08 per cent after opening at Rs 28,953, against the previous closing price of Rs 28,899. Then, it attained the intra-day low of Rs 28,851.