Gold Slips As Dollar Moves Up Ahead Of Fed

Gold.........

Gold futures are trading lower in the Asia electronic session today as the US dollar moved up from its one-month low against the Japanese yen, as the Federal Reserve prepared to start a two-day monetary-policy meeting.

The ICE dollar index, a gauge of the greenback’s movement against six other major currencies, rose to 81.711, up from 81.663 late Monday in North America. The euro bought $1.3260, little changed from $1.3263, while the British pound fell to $1.5339 from $1.5349.

The ICE dollar index had lost more than 3% since hitting its most recent high on June 9. The pullback was spurred by speculation about when the Fed will begin tapering its bond purchases and by subsequent comments from Fed Chairman Ben Bernanke about interest rates staying low for an extended period.

An ounce of gold on the COMEX division of the New York Mercantile Exchange is trading down $1.3 at $ 1328.3. Yesterday, it rose $7.70, or 0.6%, to settle at $1,329.60 an ounce. The FOMC begins its two-day meeting on Tuesday, with its decision on monetary policy due Wednesday.

September silver futures are trading down 0.049 at $ 19.81 per ounce on Comex. Yesterday, it ended higher by 9 cents, or 0.5%, to $19.86 an ounce.

A packed week of updates for the market includes the first reading of second-quarter gross domestic product in the U.S., manufacturing data from major gold consumer China, and monetary-policy decisions from the European Central Bank and Bank of England.

MCX new benchmark October contract may open today’s session near Rs 27850 levels with support around Rs 27740 levels.

Source by Commodity Insights

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

Gold Jumps Past $1300 On Dollar's Fall

Gold.......

Gold futures jumped past $1300 an ounce in the Asia electronic session today buoyed by losses in the US dollar. Gold continued to get boost from the comments by Federal Reserve Chairman Ben Bernanke earlier last week which eased concerns over the possibility the central bank will begin to taper its bond-buying program in the near future.
August dated gold futures contract is trading up $22 at $1315.4 an ounce on the Comex division of the New York Mercantile Exchange. On the week, gold prices advanced 0.85%, the second consecutive weekly gain. It may find support near $1255 levels and resistance near $1350-70 levels.
The U.S. dollar pulled lower against the yen on Monday following an election victory seen as empowering Japan’s prime minister to move forward with economic reforms in the world’s third-largest economy.
The dollar traded at ¥100.15, down from ¥100.60 on Friday but off an intraday low of ¥99.50. The ICE dollar index, which measures the greenback against six other major currencies including the yen, fell to 82.474 from 82.633 late Friday in North America.
In the first day of his semi-annual testimony to Congress, Bernanke reiterated that the Fed will continue to maintain its accommodative monetary policy for the foreseeable future. He added that the central bank may taper its USD85-billion-a-month asset-purchase program later this year and halt it around mid-2014.
Bernanke said the pace of purchases could be maintained longer if conditions are less favorable. The precious metal is on track to post a loss of 23% on the year amid concerns the Fed will start to unwind its stimulus program by the year's end.
Recently, Silver futures have been unable to pick up hit by the demand concerns. On Friday, Comex silver for September delivery eased up 0.4% to settle the week at $19.46 a troy ounce. Despite Friday’s modest gains, silver future prices lost 2.15% on the week.
Meanwhile, copper for September delivery rose 0.5% on Friday to close the week at $3.146 a pound. The red metal found support on Friday after China’s central bank said it was removing the lower limit on interest rates for banks, to help banks attract more borrowers. China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
MCX August gold may open today’s session near Rs 26770 levels with resistance near Rs 26840-900 levels.
In the week ahead, the U.S. is to publish data on the housing sector and manufacturing to further gauge the strength of the U.S. economy. Any improvement in U.S. economic activity could scale back expectations for further easing, boosting the dollar and weighing on gold.
Source by Commodity Insights

Technical Comment For the Day: Gold

Gold.......

MCX Gold settled at Rs 26347 per 10 grams, down Rs 122 per kg. The prices are very close to their 100 day EMA which is at Rs 26338 per 10 grams. The prices tested a high of Rs 26798 per 10 grams, while a low of Rs 26240 per 10 grams was tested. Fibonacci retracements set from Rs 28000, hit on 20 June 2013, show that a 38 percent retracement level is active at Rs 26040 per 10 grams. The volumes in the contract increased as the prices settled down. Total volumes were 33762 kgs on Wednesday, against 24948 a day before. However, International chart patterns suggest that COMEX Gold is well supported at $ 1270 per troy ounce. Gold can garner supports near Rs 26100-26200 per 10 grams.
TRADING STRATEGY: BUY Around Rs 26200-26250, TARGET 26600 SL 26120
Source by Commodity Insights

Gold Flattens Post Bernanke Comment

Gold.......

Gold futures are trading flat near $1278 an ounce in the Asia electronic session after Federal Reserve Chairman Ben Bernanke said there was no set timetable for slowing U.S. monetary stimulus.
Gold for August delivery are trading flat at $ 1277.5 an ounce after dropping $12.90 during Wednesday trade on the Comex division of the New York Mercantile Exchange. The undertone may remain weak today with the dollar appreciating against the single currency.
U.S. stocks ticked higher Wednesday after the Fed chairman said the central bank’s monthly bond purchases weren’t on a “pre-set course” and could be curbed or extended, depending on economic conditions.
Bernanke’s comments Wednesday came under scrutiny for clues as to when the Fed would reduce its bond purchases. Bernanke’s remarks also drove the dollar higher, with a rising U.S. currency weighing on dollar-denominated gold by making it more expensive to holders of euro, yen and other units.
The greenback extended those gains modestly in early Thursday trading, with the ICE dollar index rising to 82.751 from 82.715 late Wednesday.
The Fed chief was due to speak before the Senate later Thursday.
MCX August gold futures may open today’s session near Rs 26400 with resistance near Rs 26460 levels and support near Rs 26350 levels.
Source by Commodity Insights

Commodities Buzz: Nippon And Sumitomo Metal Prove Corrosion Resistance In Super 13Cr Line Pipe

Corrosion resistance of Super 13Cr Line Pipe (S13Cr) was proved in a joint R&D program with Shell a global group of energy and petrochemical companies. The company expects that S13Cr will be more widely used in severe oil and gas transport condition because of the proved performance of the product. NSSMC and Shell have a long term contract called EFA (Enterprise Framework Agreement).

The environments in oil and gas fields have tended to become more severe. For pipes which are used for drilling and transportation of oil and gas, resistance to corrosion is required especially when exposed to fluids containing carbon dioxide, hydrogen sulfide and chlorides. Reasonable prices and stability of supply are also essential.

Source by Commodity Insights

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

Commodities Buzz: India Gold And Silver Tariff Value Notified

According to a latest statement dated 29th June, the ministry of finance has notified the tariff value of precious metals in India as follows.

Gold- $401 per 10 grams
Silver- $604 per kilogram
Source by Commodity Insights

Gold Gets Hammered On Strong US Data

Gold.........

Gold futures got hammered further in the Asia electronic session today on strong US economic data which strengthened the US dollar and also supported the early tapering of U.S. monetary stimulus measures.
The U.S. dollar rose against rivals on Tuesday after a string of strong economic data reinforced expectations the Federal Reserve will move to slow its program of asset purchases later this year.
Several housing reports flowed in on Tuesday. U.S. home prices rose 2.5% in April, the biggest monthly increase ever, according to S&P/Case-Shiller data. A home-price report by the Federal Housing Finance Agency showed a gain, albeit more modest, of 0.7% in April adjusted for seasonality. New-home sales rose 2.1% in May to an annual rate of 476,000, their highest rate since mid-2008.
Additionally, durable-goods orders increased in May for the second month in a row, rising 3.6% to a seasonally adjusted $231 billion. Consumer confidence in June surged to a reading of 81.4, its highest level in more than five years.
The ICE dollar index which measures the U.S. unit against six other major currencies, rose to 82.553 from 82.412 late Monday in North America. The euro— which makes up more than half of the comparative basket used for the ICE dollar index by weighting — fell to $1.3095 from $1.3122.
Gold for August delivery slipped to as low as $1242.6 an ounce so far in the session today. Yesterday, it ended lower by $2 to close at $1,275.10 an ounce.
MCX Gold futures have however been cushioned by the extra soft Rupee. The August bullion futures may open today’s session near Rs 26200 levels with support around Rs 26000 levels. So far in the month of June the Indian Rupee has tumbled by more than 5% whereas the gold futures have shed just 3%.
Source by Commodity Insights

Bargain Buying Lifts Gold

Gold.........

Gold futures gold a lift in the Asia electronic session today as the investors jumped to buy the commodity after it tumbled another $15 to below $1280 an ounce yesterday following the tightening credit conditions in China.
U.S. and global equities sold off Monday, taking their cue from a sharp drop in Chinese equities following a rise in Chinese money-market rates. The sell off continued in the Asia today on concerns about a Chinese liquidity squeeze which had sparked a global selloff the previous day. Shanghai shares extended losses on worries about the impact from high money-market rates.
The Shanghai Composite Index fell 0.8%, recovering a little after falling more than 1% in the opening minutes. The Shanghai benchmark plunged 5.3% on Monday for its worst finish in nearly four years.
Adding more pressure on gold prices, analysts at Goldman Sachs cut their outlook on the metal for 2013 and 2014, citing growing price risks from a brightening U.S. economic picture. The bank now expects gold to end this year at $1,300 a troy ounce, down 9.4% on its previous forecast. It sees gold ending 2014 at $1,050 an ounce, down 17.3% on its earlier outlook.
"Medium term, we expect that gold prices will decline further given our U.S. economists' forecast for improving economic activity and a less accommodative monetary policy stance," the bank said. "Further, with quantitative easing tapering likely to start soon, perhaps even a bit sooner than previously anticipated, we are fast forwarding on our real rate path."
The price of gold plunged 6.3% in a single session last week after U.S. Federal Reserve Chairman Ben Bernanke said the U.S. central bank could start winding down its $85-billion-a-month bond-buying program later this year.
Gold for August delivery is trading up $1 at $ 1278.1 an ounce in the electronic trades today. Yesterday, fell $14.90, or 1.2%, to close at $1,277.10 an ounce, after having surrendered almost $100 over the course of last week’s trading.
MCX August bullion may open today’s session near Rs 26850 levels with resistance near Rs 26930 levels and support near Rs 26740 levels.
Source by Commodity Insights

Gold Settles After A Strom

Gold.........

Gold futures

are trading slightly higher in Asia electronic trading today aided by weakness in the US Dollar. Yesterday, it collapsed by more than 6% as investors continued to price in the Federal Reserve’s possible trimming of its monetary stimulus later this year.

After settling Nymex trade at $1,286.20 an ounce — the lowest close since September 2010 — August gold took further damage on news exchange operator CME Group Inc. CME was hiking margin requirements.

The CME, which owns the Nymex’s metals-trading Comex division, said following Thursday’s close that it would hike initial and maintenance margins for gold by 25%, according to reports. The CME's decision came after August gold futures plunged $87.80, or more than 6%, to end at $1,286.20 an ounce on Thursday, the futures' lowest closing level since September 2010. The new margins would come into effect after Friday’s close, CME said.

Gold for August delivery is trading up $3 at $ 1289.2 an ounce on the COMEX division of the New York Mercantile Exchange. The contract had tumbled to as low as $1275.4 an ounce marking its lowest level in 2 ½ years.

By late morning in East Asia, the ICE dollar index had edged down to 81.642 from its 81.823 level late Thursday. The dollar had rallied since the Federal Reserve’s statement late Wednesday, signaling it could slow its asset purchases this year if the economy improves further.

A weaker U.S. currency tends to support gold and other dollar-denominated commodities, as it makes them less expensive for holders of euros, yen and other units.

MCX August gold futures may open today’s session near Rs 27000 with resistance near Rs 27100 levels and support near Rs 26700 levels.

Source by Commodity Insights

Gold In Cautious Mode Ahead Of Fed

Gold........

Gold futures are trading in a cautious mode today as traders remain uncertainty that how long the central bank will maintain its $85 billion a month in bond purchases.
Investors are closely watching for any comments by the Fed about the future of its program of purchasing $85 billion a month in bonds, which is intended to stoke economic growth. The Fed will conclude its two-day meeting Wednesday and Fed Chairman Ben Bernanke will hold a news conference.
On the data front today, Japan's exports surged in May, as the yen traded at its weakest levels of the year, with the result leading to a smaller-than-expected trade deficit. Japanese exports rose 10.1% from a year earlier, the Finance Ministry reported Wednesday.
Gold for August delivery is trading down $1 at $ 1366 per ounce on Comex Division Of New Yrok Mercantile Exchange.
It dropped $16.20, or 1.2%, to close at $1,366.90 an ounce in Nymex floor trading as Fed officials began a two-day monetary-policy meeting. During the session, gold traded as low as $1,360.20, the lowest level for a most-active futures contract since May 23.
Economic data on Tuesday offered a mixed bag for Fed experts. Housing starts rebounded by a stronger-than-expected 6.8% in May, but consumer price inflation was more subdued than expected, posting a monthly rise of 0.1%.
MCX August gold futures may open today’s session below Rs 28000 with support around Rs 27850 levels and resistance near Rs 27970-90 levels.
Source by Commodity Insights

Gold Flat After Yesterday's Fall

Gold......

Gold futures are trading flat in the Asia electronic trades today after it fell nearly $10 at $ 1377 per ounce on disappointment that Bank of Japan offered no additional stimulus at its policy meeting and the strong Yen hurt the risk appetite in market.
Asia markets traded lower Wednesday, with investors slapping down Japanese stocks after the yen spiked overnight. Japan’s Nikkei Stock Average had thudded 1.8% lower by the end of the morning session, but it held on to the 13,000 level, trading at 13,072.61.
Other major indexes fell more modestly, with Australia’s S&P/ASX 200 down 0.9%, and South Korea’s Kospi losing 0.3%, while Singapore’s Straits Times Index and New Zealand’s NZSX 50 each lost 0.3%.
Markets in China — including those in Hong Kong and Shanghai — were closed for the Dragon Boat Festival.
The sharp fall in the US dollar was also of little help to the gold and other commodities. The dollar fell by almost 2 full yen overnight, with the greenback sitting at ¥96.48 midday in Tokyo after buying more than ¥98 at Tuesday’s Japan stock close.
The dollar traded above ¥100 early last week but hasn’t moved above that level since Japanese Prime Minister Shinzo Abe announced a slate of economic reforms — referred to as the “third arrow” of his three-pronged push to revive the nation’s fortunes, along with fiscal stimulus and monetary easing
Gold for August delivery is trading at $ 1377.2 up 2 cents an ounce on COMEX division of New York Mercantile Exchange. Yesterday, it ended Nymex floor trading down $9 at $1,377 an ounce. Earlier, the August contract traded as low as $1,364.50, its lowest intraday level since April 15.
MCX August gold futures may open today’s session near Rs 27900 levels with resistance near Rs 27950 levels and support near Rs 27750 levels.
Source by Commodity Insights

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

Gold Flattens After Gains

Gold.......
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

MCX Weekly Wrap Up: COMDEX Up Marginally

MCX Comdex was up by 1.23% to 3565.36 for the week till Thursday. MCX Metal was up by 1.55% to 4448.04 and MCX Energy was up by 0.75% to 3679.80.

Bullion:
Gold June 13 contract was up by 1.18% to Rs 26440.00 per 10 grams, GoldM July 13 contract was up by 1.29% to Rs 26542.00 per 10 grams, Goldguinea July 13 contract was up by 1.25% to Rs 21307.00 per 8 grams, GoldPetal July 13 contract was up by 1.45% to Rs 2663.00 per gram and GoldPetalDel May 13 contract was up by 2.53% to Rs 2757.00 per gram. Silver July 13 contract was up by 0.71% to Rs 43571.00 per kg, SilverM June 13 contract was up by 0.68% to Rs 43591.00 per kg, SilverMIC June 13 contract was up by 0.68% to Rs 43594.00 per kg and Silver1000 June 13 contract was up by 0.68% to Rs 43591.00 per kg.

Metals:
Aluminium July 13 contract was up 2.55% to Rs 104.55 per kg, alumini July 13 contract was up 2.20% to Rs 104.30 per kg, lead May 13 contract was up by 4.12% to Rs 113.65 per kg, lead mini May 13 contract was up by 4.12% to Rs 113.65 per kg, zinc July 13 contract was up by 2.80% to Rs 104.35 per kg, zinc mini July 13 contract was up by 2.81% to Rs 104.35 per kg, nickel July 13 contract was up by 1.96% to Rs 846.00 per kg, nickelm June 13 contract was up by 1.97% to Rs 837.90 per kg, copper June 13 contract was up by 1.99% to Rs 408.45 per kg and copperm June 13 contract was up by 1.99% to Rs 408.45 per kg while Steel RPR June 13 contract was down by 2.16% to Rs 27630.00 per MT.

Energy:
Natural gas May 13 contract was up by 9.88% to Rs 236.80 per MMBTU while Brent crude oil June 13 contract was down by 0.54% to Rs 5683.00 per barrel and Crude oil June 13 contract was down by 0.48% to Rs 5215.00 per barrel.

Source by Commodity Insights

Gold Down As Equities Rally on QE

Gold.......
Gold futures are trading lower as the equities cheered taking the Japanese stocks toward fresh multiyear highs on indication that the Federal Reserve Bank wasn’t close to slowing its asset purchases.
The rally in equity market has recently taken away the shine from gold as investors have taken away their money from gold and other commodities and have invested in the stock market.
U.S. stocks rose on Tuesday, with the Dow industrials and S&P 500 finishing at record highs, after comments from two Federal Reserve officials suggested that the central bank is not close to tapering its bond-buying program. The Dow Jones Industrial Average gained 52.30 points, or 0.3%, to end at 15,387.58, notching its 19th consecutive Tuesday rise. The S&P 500 index climbed 2.87 points, or 0.2%, to 1,669.16,
In Asia, the Nikkei Stock Average, which ended at multiyear highs in each of the last three trading sessions, climbed a further 1.1% to 15,555.82, while the broader Topix added 0.8%.
Gold for June delivery is trading down $2 at $ 1375 an ounce on the Comex division of the New York Mercantile Exchange. It shed $6.50, or 0.5%, to settle at $1,377.60 an ounce, paring losses that had taken prices to a low below $1,360.
On Tuesday, St. Louis Fed President James Bullard said the central bank should continue with its present bond-buying program and adjust the rate of purchases in view of incoming data on growth and inflation. In a separate speech, New York Fed President William Dudley said he’s not sure which way the Fed will adjust the size of its bond-purchase program.
The program has helped support gold as quantitative easing tends to pressure the dollar and can lead to inflation. Gold is often seen as a hedge against inflation.
Fed Chairman Ben Bernanke on Wednesday will testify before the Joint Economic Committee about the central bank’s economic outlook and the FOMC will release minutes from its most recent policy meeting.
MCX June gold futures may open today’s session near Rs 26100 levels with resistance near Rs 26200-300 and support near Rs 25950.
Source by Commodity Insights

Gold Declines In Europe

Gold.........

Gold futures declined in the European session today as traders booked profits as soon as the metal reached the $1399.9 per ounce in Asia.

Gold traders are now looking ahead to Wednesday’s Federal Reserve minutes, as well as testimony on the economic outlook and monetary policy by Fed Chairman Ben Bernanke.

Gold for June delivery is trading down 1 cent at $ 1384 per ounce on Comex division of the New York Mercantile Exchange. Earlier in the session it rallied to as high as $1399.9 an ounce.

European stock markets nudged lower in early trade on Tuesday, taking a breather after climbing to multiyear highs in the prior day's session. Germany's DAX 30 index shaved off 0.3% to 8,429.41, while the U.K.'s FTSE 100 index slipped 0.1% to 6,749.64. France's CAC 40 index fell 0.3% to 4,009.93.

The dollar on Monday also fell against major rivals after Chicago Federal Reserve Bank President Charles Evans said more time is needed to assess progress in the labor market. The Federal Reserve has said improvement in the jobs market will be key factor in deciding when it will begin tapering its purchases of bonds, which are aimed at stimulating economic growth.

Gold prices are still down about 6% this month, hurt in part by dollar strength and outflows from gold-backed exchange-traded funds, including SPDR Gold Trust.

MCX June gold futures fell down slightly after touching the high of Rs 26362 per 10 grams. Last it was seen trading at Rs 26103 up Rs 15. The counter should face a resistance near Rs 26450-500 levels today with support near Rs 25950 levels.

Source by Commodity Insights

Gold Tumbles Below $1400

Gold.......
Gold futures extended last days fall, tumbling below $1400 an ounce in the Asia electronic session today as the shining equities and rising US dollar waned the demand for yellow metal.
Gold for June delivery is trading down $3 at $ 1393 an ounce on the Comex division of the New York Mercantile Exchange. It fell $28.30, or 2%, to settle at $1,396.20 an ounce yesterday. Including Wednesday’s loss, prices have fallen for five straight sessions and lost more than 5% during that losing streak. The metal has fallen nearly 17% year to date.
July silver futures sank 72 cents for the session, or 3.1%, to end at $22.66 an ounce yesterday.
The decline in gold prices came as the U.S. dollar climbed against its major rivals, with the ICE dollar index at 83.848, compared with late Tuesday’s 83.575 level.
The euro dropped to a six-week low against the dollar on a closing basis Wednesday after data showed the French economy slid into a recession, with its gross domestic product slipping 0.2% in the first quarter from the three month period ended Dec. 31.
Figures released separately also showed Germany’s economy rose 0.1% during the first quarter, undershooting expectations for a 0.3% improvement.
The dollar has been shedding its haven status, rising with expectations of better U.S. economic growth and an expected end to the Federal Reserve’s quantitative easing. Those gains, combined with a broad, record-breaking rally in stocks, have curbed demand for gold as a hedge against dollar weakness and poor economic times.
MCX June gold futures may open today’s session near Rs 26300 with support around Rs 26200-100 levels.
Source by Commodity Insights

Hot Commodities: Gold Tumbles Towards $1400, Strong Dollar Hurts

Gold.....

Gold slumped towards $1400 per ounce yet again in global markets, cutting back on the recent gains and witnessing heavy selling pressure as gains in the US dollar hurt the sentiments. MCX Gold futures also witnessed a similar movement, extending its recent break under Rs 27000 per 10 grams level. The COMEX Gold futures quote at $1427.40, down $6.80 per ounce on the day. The counter had hit a high above $1440 per ounce earlier. The euro slipped under 1.2900 against the US dollar today, extending the recent downward spell after quarterly economic reports from France and Germany missed expectations. With France now in recession and Germany posting weak growth in the first quarter, the dollar continued to benefit from relatively attractive growth prospects in the U.S. French first-quarter GDP contracted by 0.2% compared with the fourth quarter of 2012, the third contraction in the last four quarters, according to the preliminary report from France's Insee agency. The German GDP edged up by 0.1% in the first quarter of 2013- managing to record nominal growth after stumbling in the previous quarter. In the last quarter of 2012, the German economy had suffered a major setback of -0.7%. The US Federal Reserve should slow and then halt bond purchases when it's time to exit from the central bank's quantitative easing efforts, Philadelphia Fed President Charles Plosser stated yesterday. The Fed is buying $85 billion per month of Treasury and mortgage-backed securities- ensuring that the US dollar edges higher. This has boosted the US dollar across the board and the persistently weak undertone in Japanese Yen has assisted the US dollar index to jump to its strongest level since July last year. Commodities are falling as a reason and Gold is getting hammered the most given the fragile sentiments after nerve wrecking collapse towards $1300 per ounce levels last month. MCX Gold futures for June tracked the global cues and tested lows near Rs 26400 per 10 grams. The counter has lost nearly Rs 300 today with a 4.75% increase in open interest indicating emergence of fresh shorts. Source by Commodity Insights