COMEX Gold Hovers Just Under $1600

Gold.......

MCX Gold futures were dominated by the settlement related trading activity today after correcting in the last week. The COMEX failed to hold on to its one month high above $1600 per ounce in the last week and corrected amid Holiday thinned trading. Strength in the US dollar and the looming expiry of the April series on COMEX ensured that the prices drop under $1600 per ounce on last Thursday last week as traders eyed at a long weekend owing to the Easter Holiday. The commodity quotes at $1598.70, up $3 per ounce right now. Prices had made a feeble attempt to hold on above $1600 per ounce before.

The metal traded mostly in a sideways manner last week even as Europe continued to jostle with the debt crisis. The greenback edged higher by almost one percent in the week and hit near five-month highs against the Euro. The US currency is consolidating around 1.2800 levels against the Euro right now as traders eye the development in Cyprus and exactly how much money the bank depositors could lose.

The massive losses suffered by savers in the island's two largest banks in the first Euro zone rescue package to punish larger depositors has been the most worrisome aspect of the bailout deliberations. Big depositors in largest lender Bank of Cyprus face losses of up to 60 percent, while those in second lender Laiki will have to wait years to see any of their money as the bank is wound up with the loss of thousands of jobs.

Asian equities slipped today as a bounce in Chinese manufacturing conditions failed to boost sentiments and traders resorted to profit selling. Chinese manufacturing activity picked up in March, with the official purchasing managers' index surging to nearly one year high. The country's official purchasing managers' index, a government survey of manufacturers, rose to 50.9 in March from 50.1 in February. It was the highest reading since April last year, indicating that growth in manufacturing activity accelerated.

MCX Gold futures for June, the recently turned benchmark contract witnessed a gap up opening today. The counter edged up towards Rs 30100 and then slipped. It is currently quoting at Rs 30033, up Rs 48 per 10 grams or 0.16% on the day. The open interest in the counter is up by 11%. The near month April futures trade at Rs 29501, up Rs 107 per 10 grams or 0.36% with a huge 39% drop in the open interest.
Source by Commodity Insights