Tuesday, 4 June 2013

Gold Flattens After Gains

Gold flattened in the Asia electronic session today after the metal jumped above $1410 lifted by a weaker dollar in the wake of data showing a contraction in U.S. manufacturing in May. The non farm payrolls data will be the big news this week, further putting light on the QE program.
Gold for August delivery is trading 0.7 at $ 1411 an ounce on the Comex division of the New York Mercantile Exchange. It rose $18.90, or 1.4%, to settle at $1,411.90 an ounce on Monday
On Monday, the dollar also fell sharply after the ISM figures, providing support for gold and other commodities.
On Friday, gold prices fell $19 an ounce after better-than-expected data about manufacturing activity in the Chicago area, and after a gauge on U.S. consumer sentiment in May reached the highest level since 2007.
Data Monday showed that the Institute for Supply Management’s index fell to 49.0% last month from 50.7% in April. That marked the first contraction since November.
China experts weighed conflicting data on the nation’s manufacturing sector, with HSBC reporting Monday that the sector contracted in May, while government numbers released earlier pointed to a pickup in activity.
Meanwhile, manufacturing PMI for the euro zone climbed to 48.3 from 46.7 in April, marking the highest level in 15 months. But the reading still indicated contraction.
MCX August gold futures may open today’s session near Rs 27300 levels with support near Rs 27230- 200 levels.
Source by Commodity Insights

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