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  • MTECHTIPS;-Turmoil In Global Stocks Lifts Gold, MCX Futures Above Rs 25800 Mark

MTECHTIPS;-Turmoil In Global Stocks Lifts Gold, MCX Futures Above Rs 25800 Mark

MTECHTIPS;-Turmoil In Global Stocks Lifts Gold, MCX Futures Above Rs 25800 Mark

A turmoil in world equities boosted gold further today. Weakness in Indian Rupee isalso providing an excellent support to local gold futures. Asian stocks slipped heavily today and European markets also opened on a bleak note after a raft of weak Chinese data.Markets also remained in awe of China’s devolution of the yuan by nearly 2%, allowing the currency to fall to levels last seen in 2012. This measure has caught the market men off guard as a slowing Chinese economy can have drag the global growth rates lower in coming quarters. Gold has been rallying following these cues, extending its break above $1100 per ounce. Gold soared near three week high and currently trades around the same mark at $1118 per ounce, up 0.93% on the day. MCX Gold futures for October are trading at Rs 25813 per 10 grams, up 1.52% on the day. The INR dropped well beyond 64 per US dollar today, testingits two year lows and pushing local gold futures further up. Gold stayed under pressure last week but witnessed sustained support around five and half year lows amid strong US gold coins demand and bargain buying. Traders are also becoming wary of the global miners responding with production cuts if gold falls further from hereon. Stanley Fischer, the vice chairman of the US central bank stated Monday that the US Federal Reserve is concerned about low inflation and won’t move before it seesinflation returning to more normal levels. This boosted gold, keeping a tab on the USdollar. A break in COMEX Gold also pushed up its MCX counterpart above the critical Rs 25000 per 10 grams mark.

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