Tuesday, 4 June 2013

Gold Jumps As Equities Bump

Gold  .........
Gold futures jumped in the Asia electronic session today as the dull equity markets attracted investors towards the yellow metal.
Asian stocks fell Wednesday after U.S. equities lost ground overnight amid concerns the Federal Reserve may taper its bond purchases, while Japanese shares seesawed as investors awaited a key policy speech from Prime Minister Shinzo Abe.
Australia’s S&P/ASX 200 fell 1.2%, extending losses after data showed the domestic economy expanded at a slower-than-expected rate during the January-March quarter. Elsewhere, the Shanghai Composite eased 0.1%, Hong Kong’s Hang Seng Index fell 0.7%, and South Korea’s Kospi gave up 0.6%.
In Japan, the Nikkei Stock Average and the broader Topix index slipped 0.1% each ahead of Abe’s widely anticipated outline of his economic growth strategy, due later in the day. The Japanese benchmarks swung between gains and losses, changing direction several times.
Gold for August delivery is trading up $9 at $ 1406 per ounce on the Comex division of the New York Mercantile Exchange. It dropped $14.70, or 1%, to settle at $1,397.20 an ounce yesterday.
The move came a day after gold prices tacked on $18.90 an ounce, or 1.4%, to close at $1,411.90, helped by a decline in the dollar on data showing a contraction in U.S. manufacturing in May. Prices for the August gold contract had lost $19 on Friday.
On Tuesday, U.S. equities moved lower in afternoon trading as Fed worries weighed. Separate data showing the fastest home-price growth in more than seven years and the U.S. trade gap widening less than expected took a back burner.
The markets will further assess the Fed’s bond buying — aimed at stimulating economic growth — when the widely watched U.S. employment report for May is released on Friday. An employment report from ADP comes out on Wednesday.
MCX August gold futures may open today’s session near Rs 27250 levels with resistance near Rs 27350 levels.
Source by Commodity Insights

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