Gold Slips Under 29700 On MCX, Broad scenario supportive

Gold....

MCX Gold futures dropped amid profit selling after a massive rally in the Friday's session. Gold futures got a boost on the disappointing jobs data, which put to rest recent sentiments that the Federal Reserve may consider tightening policy in the coming months. The U.S. Bureau of Labor Statistics reported earlier the economy added 88,000 nonfarm payrolls in March, way below expectations for a gain of 200,000 and below the 268,000 jobs added in February. The metal edged up at a ferocious pace following this, adding nearly 30 dollars in intraday moves. The counter currently quotes at $1577.50, up $1.6 per ounce on the day.

The broad sentiments are supportive for Gold. Japanese Yen dropped to near four month lows today as the country's central bank got its massive stimulus program underway. The euro was also dented by troubles in Portugal. The European Commission warned in a statement yesterday that failure by Portugal to implement its austerity program would results in the curtailment of future financial aid.

The US non farm data revealed on Friday that the private sector added 95,000 jobs last month, after an increase of 254,000 in February, missing expectations for a 209,000 rise. The report also showed that the U.S. unemployment rate ticked down to 7.6% in March, from 7.7% the previous month, as more Americans left the labor force. The news sent the dollar falling and gold rising on expectations for the Federal Reserve to keep monetary stimulus programs in place, including its USD85 billion monthly bond-buying program that weakens the greenback as a side effect.

COMEX Gold has come off a high above $1582 per ounce an there could be some upside resistance for the yellow metal after the massive array of gains seen on Friday. The US dollar is quoting just under 1.3000 levels against the Euro, coming off its two-week low levels but would be benefited from the Portugal troubles. MCX Gold futures slipped as the Rs 29800 barrier yet again triggered a correction. The counter quotes at Rs 29654 down Rs 113 per 10 grams on the day with 1.57% increase in the open interest.

Source  by Commodity Insights