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
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