Gold futures extended last days fall, tumbling below $1400 an ounce in the Asia electronic session today as the shining equities and rising US dollar waned the demand for yellow metal.
Gold for June
delivery is trading down $3 at $ 1393 an ounce on the Comex division of
the New York Mercantile Exchange. It fell $28.30, or 2%, to settle at
$1,396.20 an ounce yesterday. Including Wednesday’s loss, prices have
fallen for five straight sessions and lost more than 5% during that
losing streak. The metal has fallen nearly 17% year to date.July silver futures sank 72 cents for the session, or 3.1%, to end at $22.66 an ounce yesterday.
The decline in gold prices came as the U.S. dollar climbed against its major rivals, with the ICE dollar index at 83.848, compared with late Tuesday’s 83.575 level.
The euro dropped to a six-week low against the dollar on a closing basis Wednesday after data showed the French economy slid into a recession, with its gross domestic product slipping 0.2% in the first quarter from the three month period ended Dec. 31.
Figures released separately also showed Germany’s economy rose 0.1% during the first quarter, undershooting expectations for a 0.3% improvement.
The dollar has been shedding its haven status, rising with expectations of better U.S. economic growth and an expected end to the Federal Reserve’s quantitative easing. Those gains, combined with a broad, record-breaking rally in stocks, have curbed demand for gold as a hedge against dollar weakness and poor economic times.
MCX June gold futures may open today’s session near Rs 26300 with support around Rs 26200-100 levels.
Source by Commodity Insights
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