Thursday, 25 April 2013

Gold Jumps As Dollar Falls

Gold futures have jumped above $1480 levels in the Asia electronic trades today supported by the weakness in the US dollar. The metal has jumped more than $50 after hitting the low of $1321 on 16th April on bargain buying and weakness in the US dollar.
The U.S. dollar fell against key rivals Friday, as investors monitored Japan's monetary-policy meeting and awaited quarterly growth figures from the U.S. The ICE dollar index, a measure of the greenback against a basket of six other currencies, fell to 82.576 from 82.813 late Thursday. The index faced a decline of around 0.2% for the week.
The dollar lingered at 98.66 against Japanese yen after trading over 99 late on Thursday. The dollar lost ground against the yen the previous day, though those losses were limited by weekly U.S. jobless claims falling to near a five-year low.
The yen found some strength on Friday after Japan's Finance Ministry said consumer prices fell in March from the year-earlier period. The core consumer price index, which strips out volatile prices for fresh food, declined 0.5%.
Japan's key retail-price gauge deflated in March from a year earlier, even as the index rose compared to February's levels, the Finance Ministry reported Friday. The core consumer price index, which strips out volatile fresh-food prices, was 0.5% lower than for March of last year, the fifth straight monthly drop. However, the core CPI rose 0.3% compared with the previous month.
Gold for June delivery is trading up $13.5 at $ 1475.5 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it climbed by $38.30, or 2.7%, to settle at $1,462 an ounce. Prices closed at their highest level since April 12.
Gold prices have had a rough April, with a tumble of over 8% putting them in position for their worst monthly slide since December 2011. Data Thursday showed US weekly jobless claims at the second lowest level of the year. Reports on first-quarter gross domestic product and consumer sentiment in April are slated for release Friday.
MCX June gold crossed the Rs 27000 mark, however it is expected to face a good resistance near Rs 27300-700 levels.
Source by Commodity Insights

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