Gold futures closed higher in the domestic market on Wednesday as investors looked ahead to a key U.S. employment reading due late this week.
Higher interest rates tend to be dollar-supportive, cutting demand for dollar-priced gold for investors using other currencies. Higher rates also weigh on demand for gold, which doesn’t bear interest, in favor of yield-bearing investments.
At the MCX, gold futures for June 2017 contract ended at Rs 28810 per 10 grams, up by 0.24 per cent, after opening at Rs 28,705 against a previous close of Rs 28,741. It touched the intra-day high of Rs 28,880.
Silver futures closed lower in the domestic market on Wednesday as participants engaged in trimming their positions taking weak cues from global market. Marketmen attributed the fall in silver prices at futures trade to a weak trend in the precious metals overseas and profit-booking by participants at existing levels.
At the MCX, silver futures for July 2017 contract closed at Rs 40016 per kg, down by 0.66 per cent, after opening at Rs 40,105, against a previous close of Rs 40282. It touched the intra-day low of Rs 39,910.
Crude oil futures closed lower in the domestic market on Wednesday underscoring investors’ belief that the extended-production caps by major producers and the summer-driving season in the U.S. won’t do enough to reduce global supplies.
The initial OPEC-led production cuts has so far done little to cut global inventories. And the initial price jump after the deal was announced six months ago helped encourage new U.S. drilling activity and send oil production there rebounding after 2016’s decline.
At the MCX, crude oil futures for June 2017 contract closed at Rs 3124 per barrel, down by 2.47 per cent, after opening at Rs 3196, against a previous close of Rs 3203. It touched the intra-day low of Rs 3090.
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