Gold Breaksdown As Haven Demand Hits

Gold.....
Gold futures had a breakdown below $1570 an ounce levels in Asia electronic session today as its safe haven demand had a hit on the strong US dollar and solid gains in the US equity markets.
Japanese stocks rebounded early Wednesday, helped by weaker yen, with other Asian markets putting in a lackluster performance. Japan’s Nikkei Stock Average rose 1.8% after a 1.1% drop in the previous session, while Australia’s S&P/ASX 200 fell 0.9% despite a higher open, and South Korea’s Kospi surrendered 0.6%. In China, Hong Kong’s Hang Seng Index sat little changed, while the Shanghai Composite Index rose 0.2% in choppy trade ahead of a four-day weekend for mainland Chinese markets.
U.S. stocks gained Tuesday, with the Dow Jones Industrial Average and the S&P 500 both closing at record highs as health insurers rallied on Medicare-reimbursement news and U.S. factory orders rose in February.
The Dow industrials rose 88.16 points, or 0.6%, to 14,662.01, with the blue-chip index topping the prior record hit late last week. The S&P 500 added 8.08 points, or 0.5%, to 1,570.25, its all-time closing high.
Gold for June delivery is trading down $8.4 at $ 1567.5 an ounce on COMEX. Yesterday, it dropped $25, or 1.6%, to settle at $1,575.90 an ounce. It was just a day earlier that gold reclaimed the $1,600 an-ounce level, rising $5.20, or 0.3%, to settle at $1,617.90 an ounce, feeding off weaker-than-expected U.S. manufacturing data.
On Tuesday, investors grappled with a clutch of downbeat European data, including figures showing a deeper factory downturn in March, which drove the euro south against the dollar. The greenback also climbed as the Japanese yen weakened ahead of a Bank of Japan policy meeting.
The ICE dollar index traded at 82.877, up from 82.744 late Monday in North American trading.
MCX June gold futures may open today’s session near Rs 29600 levels with support Rs 29450 and Rs 29300 levels. Yesterday, it closed lower by Rs 422 (1.4%) at Rs 29,605 per ten grams. Prices rose to a high of Rs 30,047 per 10 grams and fell to a low of Rs 29,580 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed lower by Rs 1,252 (2.4%) at Rs 51,473/Kg yesterday. Prices opened at Rs 52,847/kg and fell to a low of Rs 51,254/Kg during the day's trading.
Source by Commodity Insights