Gold Extends Gains In Asia

Gold.......

Gold

futures extended gains in the Asia electronic session today, hitting an intraday high of $ 1340.5 per ounce. The metal also got some safe haven support from the losses in the Asian equities.

In Asia, the Japanese stocks tumbled toward a third straight day of losses on the yen’s strength, while Australian and South Korean shares climbed following overnight gains on Wall Street. Japan’s Nikkei Stock Average skidded 2.1%, and China’s Shanghai Composite lost 0.7%, after each also declined in the previous two sessions.

Gold for December delivery is trading up $9.1 at $ 1338.6 an ounce on the COMEX division of New York Mercantile Exchange. The august delivery contract which expired yesterday ended the session up $9.30, or 0.7%, to settle at $1,328.80 an ounce. Prices for the contract had tallied a two-session loss of 1.2%.

In the currencies today, the U.S. dollar came off one-months lows against the euro and the British pound Friday, but the greenback was still in line to post a loss of more than 1% for the week. The euro on Friday traded at $1.3281, down slightly from $1.3290 on Thursday, when it reached its strongest level since June 19. The dollar had advanced to ¥99.29 from ¥99.11 just after Japan’s Finance Ministry said the core consumer price index rose 0.4% from June 2012, though it was unchanged compared with May’s levels.

Investors later Friday will receive the final reading on U.S. consumer sentiment in July, with the survey expected to show a rise to 84 from a preliminary reading of 83.9. Late next week, attention will turn to the U.S. government’s key jobs report for July, with labor-market conditions a major component of the Fed’s assessment of economic recovery.

MCX August gold futures may open today’s session near Rs 27400 levels with resistance near Rs 27470-90 levels and support near Rs 27250 levels.

Source by Commodity Insights