Monday 1 July 2013

Gold Extends Gains Above $1250

Gold........
Gold futures are trading higher in the Asia electronic session today, extending its yesterday’s gains of over 2%. Prices surged 2.2% to a session peak of $1,260.61 per ounce yesterday on bargain hunting after the metal tumbled more than $200 in June.
The metal hit a near three-year low of $1,180.71 on Friday and jumped up from that level to near $1260 levels today. Today the metal is trading up $ 1.3 at $ 1257 per ounce on Comex. Yesterday, it settled at $1,255.7 per ounce, up $32 or 2.6%.
A weaker dollar and fresh flow of institutional money on the first day of the quarter also provided support. A slew of data from the euro zone, Japan and United States signalled a continued tentative global recovery, boosting equities, copper and oil prices.
U.S. manufacturing expanded in June, while Japanese and European data pointed to stabilizing economies. The Institute for Supply Management said its index of national factory activity rose to 50.9 in June from 49.0 in May. That was a touch above the expected 50.5 level.
Hedge funds and money managers have also slashed their bullish bets in gold futures and options to their lowest levels in six years, a report by the Commodity Futures Trading Commission showed on Friday.
The low prices of the past few weeks have subdued physical demand for gold in Asia, traditionally the largest buyer of the commodity. Asian consumption of gold had helped limit some of bullion’s losses when prices fell the most in 30 years in April.
MCX August gold futures may open today’s session near Rs 26000 levels with resistance near Rs 26100 levels.
Traders and investors are awaiting U.S. payrolls report for June, due on Friday, for a better indication of how gold and other assets would perform. A strong payrolls reading would likely signal more pressure on the Fed to reduce its stimulus, lifting Treasury yields and the dollar, and depressing gold.
Markets are also watching the European Central Bank’s policy meeting on Thursday, which is likely to emphasize that the euro zone economy is in a different stage of recovery than the United States.
Source by Commodity Insights

No comments:

Post a Comment