Gold.....



Gold futures crashed down hard extending its losses in the Asia electronic session today following a bearish FOMC meeting minutes report.
The Federal Reserves Open Market Committee in early January said U.S. economic conditions are improving to the point that its massive asset purchasing program (quantitative easing) may have to be changed. The FOMC will further address the issue at its next meeting in March. The U.S. Treasury markets, with their recent rising bond yields, are also hinting that the Feds very accommodative monetary policy of the past few years will start to wind down in the not-too-distant future.

Overall, many Fed officials are worried about the costs and risks of the asset purchases, the minutes show. During the meeting, several Fed officials expressed concern about the potential for excessive risk taking by
investors due to the Feds ultra-loose policy. The Fed will meet next on March 19-20.
Gold for April delivery are trading down $18.4 at $ 1559.6 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it ended lower by $26.2 or 1.6%, to settle at $1,578 an ounce.
Federal Reserve officials will consider major changes to the central banks quantitative-easing program at their next meeting in March, according to minutes of the January meeting released Wednesday. Fed officials appear divided about how to proceed with the current $85 billion per month purchase program.
Markets will be combing through a slew of U.S. data later in the day for more signs of a stronger economic recovery. The weekly jobless claims report, a survey on the manufacturing sector and home sales are all up next.
MCX April delivery gold futures may open today’s session near Rs 29500 levels with support around RS 29400 and RS 29250 levels.
Source by Commodity Insights