Gold Off Highs On Profit Taking

Gold off the high on Monday, after briefly climbing above the key $1,400 level as investors awaited further clues from the Federal Reserve as to when the central bank will start cutting back on its easy money policies. Gold pared the gains as greenback gained and on profit taking of the gains.

Asian stock markets were mixed on Monday, amid ongoing uncertainty over the timing of the Federal Reserve's widely expected reduction in monthly bond purchases.

European stocks opened lower in light trade on Monday, as investors remained cautious amid ongoing uncertainty over the future of the Federal Reserve's stimulus program.
The central bank is scheduled to meet September 17-18 to review the economy and assess policy. Market players were looking ahead to U.S. data on durable goods orders later in the day.

The U.S. dollar was mixed against its major rivals on Monday, as traders looked ahead to the release of U.S. durable goods data later in the day amid ongoing uncertainty over the timing of the Federal Reserve's widely expected reduction in monthly bond purchases.

The Euro quotes at $1.3371, down 0.06% and U.S. dollar index quotes at 81.48, up 0.07 points.

The COMEX gold December delivery trades at $1,349.50, down $1.30 a troy ounce and Silver December quotes at $24.043, up 0.262 a troy ounce.

Gold rallied nearly 2% on Friday after the Commerce Department said new home sales fell by 13.4% in July, the largest decline in more than three years.

Local Gold futures remained supported on the back of weak Indian rupee. MCX Gold October delivery quotes at Rs 31,920, up Rs 162 and Silver September contract quotes at Rs 53,926, up Rs 453 from last close.

Local currency value fell against the U.S dollar on Monday, Indian rupee quotes at Rs 64.50, up Rs 1.178 or 1.86% from last close.

Gold Showing Signs Of Weariness After Recent Gains

MCX Gold futures continued to retreat in intraday moves, mimicking moves in the last session. COMEX Gold flipped back from highs near $1380 per ounce. Global prices continued to face resistance as the Fed looked set to trim its asset purchases by the year-end. Local prices have turned up this week as the Indian Rupee fell above 65 per US dollar and pushed up the metal on the local bourses. COMEX Gold is hovering at $1372.60 per ounce- up around two dollars on the after. Prices have hit two-month high levels earlier in the week. MCX Gold quotes at Rs 31115, down Rs 25 per 10 grams or 0.80% on the day.

The Conference Board Leading Economic Index (LEI) for the US increased 0.6 percent in July to 96.0 (2004 = 100) yesterday, following no change in June, and a 0.3 percent increase in May. Meanwhile, the number of US workers seeking new unemployment benefits rose last week but remained near five-year lows, an indication of an improving labor market. Also Thursday, financial data firm Markit reported that a preliminary PMI (purchasing managers' index) index of factory activity rose in August to 53.9, its best showing since March. A reading above 50 indicates expansion.

The keenly awaited minutes of the last US Fed meet revealed earlier in the week that ''a few'' members of the Federal Open Market Committee (FOMC) ''suggested that it might soon be time to slow somewhat the pace'' of asset purchases, the minutes said. But the timing of the Fed's plan to taper its stimulus program remained unclear, as others in the group ''emphasized the importance of being patient''. They said more data gauging growth in the economy was needed before reducing the $US85 billion-a-month bond-buying program.

Fed officials also discussed the rise in interest rates following the June FOMC meeting. Some participants indicated that overall financial-market conditions had tightened significantly. They also expressed concern that the higher level of longer-term interest rates could be a significant factor holding back spending and economic growth.

The exports of gold jewellery from India dropped 70% in July due to non-availability of the raw material, while silver jewellery shipments more than doubled in the same period, the Gems and Jewellery Export Promotion Council (GJEPC) said. Shipments of gold jewellery fell to $441.4 million in July from the $1.5 billion in the year ago period, the total gems and jewellery exports fell 17 percent to $2.49 billion, the GJEPC noted. Gold imports into India are expected to re-start by next week after the central bank clarified a new rule that brought the flow of the precious metal into the world's top gold consumer to a standstill at the end of July.

Gold Steady But Dollar May Weigh

Gold futures are trading steady above $1375 an ounce in the Asia electronic session today, however the metal may face a resistance as the dollar strengthened.
Gold for December delivery is trading up $5.70 to $1,376.5 an ounce, extending its yesterday’s gains on the New York Mercantile Exchange. Earlier, today it jumped to as high as $1379 an ounce.
Yesterday, the gold prices rose to the highest levels of the day after the U.S. Department of Labor said the number of individuals filing for initial jobless rose by 13,000 to a seasonally adjusted 336,000 last week. Jobless claims for the preceding week were revised up to a gain of 323,000, from a previously reported 320,000.
The minutes of the central bank’s July meeting showed that Fed officials were "broadly comfortable" with plans to scale back the bank’s USD85 billion-a-month stimulus program. However, policymakers remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate.
The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken. The central bank is scheduled to meet September 17-18 to review the economy and assess policy.
The Kansas City Federal Reserve hosts an annual meeting of central bankers at Jackson Hole, Wyo., which is due to kick off Friday. While Fed Chairman Ben Bernanke won’t be attending, markets will watch the proceeding for any further clues to the policy outlook.
MCX October gold futures may open today’s session near Rs 31220 levels with resistance near Rs 31300 levels. Yesterday, it closed down nearly 1 % at Rs 31140 per 10 grams.

MCX Gold Reverses Direction, Global Prices Not Moving Much

MCX Gold flipped back in the afternoon after recording heavy gains. The Indian Rupee fell above 65 per US dollar and pushed up the metal on the local bourses. However, global prices continued to face resistance as the Fed looked set to trim its asset purchases by the year-end. COMEX Gold is hovering at $1370 per ounce- unchanged on the day after hitting its two-month high levels earlier in the week. MCX Gold quotes at Rs 31352, down Rs 92 per 10 grams or 0.30% on the day.

The keenly awaited minutes of the last US Fed meet revealed yesterday that ''a few'' members of the Federal Open Market Committee (FOMC) ''suggested that it might soon be time to slow somewhat the pace'' of asset purchases, the minutes said. But the timing of the Fed's plan to taper its stimulus program remained unclear, as others in the group ''emphasized the importance of being patient''. They said more data gauging growth in the economy was needed before reducing the $US85 billion-a-month bond-buying program.

Fed officials also discussed the rise in interest rates following the June FOMC meeting. Some participants indicated that overall financial-market conditions had tightened significantly. They also expressed concern that the higher level of longer-term interest rates could be a significant factor holding back spending and economic growth.

The exports of gold jewellery from India dropped 70% in July due to non-availability of the raw material, while silver jewellery shipments more than doubled in the same period, the Gems and Jewellery Export Promotion Council (GJEPC) said. Shipments of gold jewellery fell to $441.4 million in July from the $1.5 billion in the year ago period, the total gems and jewellery exports fell 17 percent to $2.49 billion, the GJEPC noted. Gold imports into India are expected to re-start by next week after the central bank clarified a new rule that brought the flow of the precious metal into the world's top gold consumer to a standstill at the end of July.

Gold Fragile Ahead Of FOMC

Losses in gold deepened with the US dollar trading higher and sharp drop in the crude oil prices. Fed policy is the center of attention, with the U.S. central bank's Federal Open Market Committee meeting minutes due later today.
European stock markets traded mixed in early action on Wednesday, with investors closely awaiting the minutes from the latest U.S. Federal Reserve meeting, which could shed more light on the potential reduction of asset purchases. France's CAC 40 index rose 0.3% to 4,041.93, while Germany's DAX 30 index was slightly lower at 8,297.30. The U.K.'s FTSE 100 index lost 0.3% to 6,434.87.
Comex gold for December delivery lost $8.9 to $1,363.7 an ounce on the New York Mercantile Exchange. Yesterday, it ended higher by $6.90, or 0.5%, to settle at $1,372.60 an ounce.
September silver futures extended yesterday's losses, breaking below $23 an ounce. Yesterday, it fell 9.5 cents, or 0.4%, to end at $23.07 an ounce, extending Monday's 16-cent decline.
The downward drift came as the dollar edged higher, with the ICE dollar index rising to 80.937 from 80.901 late Tuesday in North America. The minutes, due to be released at 2 p.m. U.S. Eastern time Wednesday, are expected to provide clues as to when the central bank will begin rolling back its stimulus.
However, the Indian gold futures are up due to stark weakness in the Indian Rupee. The October gold futures are trading up Rs 18 at Rs 30830 per 10 grams. The metal should face a resistance near Rs 39990 levels.
The Indian rupee opened lower at 63.44 per dollar versus 63.25 yesterday. Dollar weakened to trade sub 81 levels. The euro-dollar sees a smart upmove to a 6-month high of 1.34 levels.
The Reserve Bank has announced another set of measures to rescue the rupee, bonds, and bank stocks. The RBI said that it will purchase Rs 8,000 crore worth of bonds via open market operations on Thursday. It added that it will calibrate its purchases in the future, when needed.

Gold Off Two-Month Highs Ahead Of Fed Minutes

MCX Gold futures are on a firm foot today, aided by a dismal undertone in Indian Rupee even as the global prices moderated. The COMEX Gold futures tested lows near $1360 per ounce as investors waited for the FOMC minutes to be released in evening. However, bargain buying supported the commodity as investors eyed good demand from India and China. The metal is quoting at $1365.90, down $6.70 per ounce on the day. Prices had hit a two-month high of $1384 per ounce on Monday.

China may overtake India as the world's biggest gold consumer in 2013 as the dragon country has more favourable policy on the precious metal as compared to the economy here, the WGC said last week. Gold consumption in China rose to 570 tonnes in the first half of the current calendar year, slightly higher than 566.5 tonnes in India, the data showed. Consumers in these two countries expect gold prices to be stable or higher in the future, it said.

According to the latest WGC report, the gold consumption in China during the April-June period of this year confirms that the gold investment demand in China remains strong. The poorly performing stock market in that country is not an attractive alternative investment and gold investment products are increasingly available and easily accessible to a captive domestic audience. In China, continued expansion of the domestic jewellery retail network and growth in production capacity has positive longer-term implications for jewellery demand.

Indian Rupee fell near 64.60 per US dollar levels as the local stock markets witnessed a massive intraday sell off and dropped nearly 2% on a closing basis to end at an 11 month low. MCX Gold futures are trading at Rs 31209, up Rs 397 or 1.29% on the day with 4.30% increase in the open interest. Prices had dropped near Rs 30600 per 10 grams earlier.

Gold, Silver Trim Gains In Europe Hours

Gold futures trimmed the gains in the early European trading hours today after trading sharply higher in the Asian mark

et hours. Profit booking along with the firmness in the US dollar hindered the upside for yellow metal and other commodities.
European stock markets traded lower in early action on Monday, tracking losses seen overnight in Asia and last week in the U.S. where worries over rising Treasury yields spooked investors. The U.K.'s FTSE 100 index dropped 0.3% to 6,483.71, while France's CAC 40 index gave up 0.7% to 4,096.90. Germany's DAX 30 index gave up 0.6% to 8,338.65.
Gold for December delivery are trading up $1 at $1,372 an ounce on the Comex division of the New York Mercantile Exchange. It jumped 1.15% on Friday to settle the week at $1,376.30 a troy ounce. The metal may find support near $1300 levels with resistance near $1400 an ounce.
Gold prices added 4.55% last week the strongest gain since the week ending July 12. The precious metal has rebounded 16% since hitting a 34-month low of $1,180.15 a troy ounce on June 28.
September silver futures are trading above $23 an ounce in the Asia electronic session today. It rallied 1.3% on Friday to settle the week at $23.23 a troy ounce, the strongest level since May 15. Last week, it surged 11.7%, the biggest weekly advance since September 2008. Silver prices are up 24% since hitting a three-year low of $18.19 on June 28.
Minutes from the Fed’s policy meeting in late July may shed more light on the taper timing, including information on how many policy makers were ready to slow asset purchases. The minutes are due out Wednesday.
MCX October gold futures are trading down nearly Rs 50 at Rs 30795 per 10 grams. It may find support near Rs 30700 levels and Rs 30590 levels.
MCX Silver futures are trading down nearly Rs 200 at Rs 50470 per kg. It may find support near Rs 50300 and Rs 50100 levels.

Gold Extends Gains; COMEX Closed Today

Gold futures extended gains above $1250 an ounce in the Asia electronic session today getting safe haven appeal from political turmoil in Egypt and Portugal. U.S. markets will be closed on Thursday for Independence Day. Regular trading for Comex will resume Friday.
Gold for August delivery is trading up $3 at $ 1255 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it rose $8.50, or 0.7%, to settle at $1,251.90 an ounce. U.S. markets will be closed on Thursday for Independence Day. Regular trading for Comex will resume Friday.
The worse than expected fall in the Institute for Supply Management said its services index fell to 52.2% in June abating the fears of early wind up of Fed’s QE.
Monetary stimulus by the Fed and other central banks helped fuel price gains for gold in recent years. Gold prices in 2013 have plunged, however, in part as the Fed has said improvement in the economy may lead it to pull back on bond purchases as early as this year.
The data released yesterday showed that the U.S. employers added 188,000 private jobs in June, Automatic Data Processing said. Economists had expected an increase of 160,000 private jobs. Also, the Labor Department said first-time jobless claims declined by 5,000 to 343,000 last week, better than forecast. The reports lead up to Friday’s release of the highly anticipated U.S. monthly employment report.
MCX August gold futures may open today’s session near Rs 26200 levels with resistance near Rs 26300-350 levels and support around Rs 26150 levels. A tight range may be expected in gold today as the international markets remain closed today

MCX Gold Jumps Above Rs 26k

MCX gold staged a rebound of more than Rs 1000 per 10 grams after it fell below Rs 25000 per 10 grams last week sacked down by the signal from the chairman of the Federal Reserve, Ben Bernanke that he intends to cut back the US central bank's $85bn-a-month stimulus programme.
MCX August bullion futures jumped more than Rs 200 at Rs 26199 per 10 grams. The counter may face a resistance near Rs 26350 levels. COMEX August gold futures jumped more than $10 at $ 1266 an ounce today.
Last week, domestic gold prices hit a 23-month low of Rs 24830 per 10 grams on Friday 28 June 2013 on heavy selling triggered by a sharp plunge in global gold prices and on account of the strengthening of the Indian rupee. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. It hit a high of 59.21 in intraday trade today after closing at 60.19 on Thursday.
Immediately after Bernanke announced the QE plan and gold crashed many investment banks started cutting the price forecast for the precious metal dragging it further lower. The metal plunged 6.3% in a single session last week after Fed Chairman Ben Bernanke said the U.S. central bank could start winding down its $85-billion-a-month bond-buying program later this year.
International gold prices have dropped by nearly 15% – the steepest fall in 30 years – on strength in the US dollar and on persistent worries over the U.S. Federal Reserve's plan to wind down its monetary stimulus. So far in 2013 the metal is down nearly 30%, sliding since Fed Chairman Ben Bernanke laid out a strategy to wind down the bank's $85 billion monthly bond purchases on the back of a recovering economy.
Fall in the domestic gold was far less than a near 14% fall in the international gold prices, the credit of which goes to the persistent fall in Indian Rupee. If the MCX gold would have fallen in pace with the COMEX gold then the metal would have slipped to below Rs 23500 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.

Gold Up Again After A Crash

Gold futures inched up again after prices crashed by nearly $50 yesterday hitting multiyear lows on growing expectations the U.S. Federal Reserve will slow the pace of economic stimulus later this year.
Gold for August is trading up $8 at $ 1238 an ounce on the COMEX division of the New York Mercantile Exchange. Yesterday, it fell $45.30, or 3.6%, to close at $1,229.80 an ounce the lowest close for a most-active contract since August 2010.
Gold prices so far this week have lost nearly 4.5%, and are down 11.6% in the month-to-date as the end of June trading approaches. Gold futures are on track for a decline of 23% this quarter.
The weak US GDP data also supported the sentiments for gold today as it raised the hopes that Federal Reserve will maintain its bond purchases for longer.
U.S. stocks jumped Wednesday, pulling benchmark indexes into positive terrain for the week, as a downward revision in economic growth calmed concern about U.S. monetary policy. Asian equities also jumped tracking the US equities and robust growth in China industrial profits also boosted the markets.
China’s Shanghai Composite rose 1.2% after dropping in 15 of the past 17 trading days. Japan’s Nikkei Stock Average rose 1.8%, Hong Kong’s Hang Seng Index climbed 1.5%, and Australia’s S&P/ASX 200 gained 1.3%.
The advances followed a higher finish on Wall Street overnight after U.S. first-quarter GDP growth was revised down to 1.8%, from an earlier estimate of 2.4%.
Wells Fargo Advisors cut its year-end target range for gold, saying it now expects to see prices settle at $1,225 to $1,325 an ounce. It has previously expected prices to end the year at $1,475 to $1,525 an ounce. Wells Fargo also reduced its 2013 inflation target to 2% from 2.5%.
Goldman Sachs, Credit Suisse and HSBC downgraded their gold forecasts this week.
Gold production in China, the world's largest producer, is expected to rise about 10% this year to a record even as bullion prices slump, the nation's mining association said, according to media reports. The country recorded output of 403 tonnes last year. Production gained 12% in the first four months from a year earlier to 122.89 tonnes, according to the producer-funded China Gold Association.
MCX August gold futures may open today’s session near Rs 26300 levels with resistance near Rs 26500 levels.

MCX Silver Breaks Below Rs 40000

After trading a range bound manner for nearly 2 months, silver prices finally got the downward direction. The white metal slumped below Rs 40000 per kg today as the upbeat US data released yesterday supported the view that the Federal Reserve will slow the pace of monetary stimulus this year.
MCX July silver futures tumbled to as low as Rs 39325 per kg today. The metal had fallen by nearly 10% so far this month; however the fall in prices has been curbed by the extra soft Indian Rupee. The Indian Rupee has fallen by more than 5% so far this month to low of nearly 60 per dollar. The counter should find support near Rs 39000-37000 levels in the near term.
The international silver futures have been hurt more severely due to sharp appreciation in the US dollar. COMEX July silver futures tumbled below $19 an ounce, falling nearly 17% so far in June 2013.
The dollar-denominated commodities felt the pinch from a rise in the U.S. dollar against key rivals, with the greenback looking for a sixth consecutive day of gains. The buck rose Tuesday after a report showed U.S. sales of new homes rose 2.1% in May, the fastest rate since mid-2008, and the Case-Shiller April home-price index jumped 2.5% in April, the largest monthly growth on record.47070
Federal Reserve Chairman Ben Bernanke last week indicated the central bank may slow the pace of bond buying as early as this year if the economy continues to improve within its forecasts. The Fed currently buys $85 billion a month in U.S. Treasurys.
Later Wednesday, the U.S. Commerce Department is slated to release the third estimate of gross domestic product for the first quarter.

Gold Up After A Drop

Gold futures inched up after dropping below $1380 levels yesterday weighed down by strength in the US dollar, on rally in equities and on cut in gold price forecast by Bank of America Merrill Lynch.
Gold for August delivery is trading up $7.9 at $ 1386.8 an ounce on the Comex division of the New York Mercantile Exchange. It shed $7.80, or 0.6%, to settle at $1,379.70 an ounce. It traded as low as $1,372.80 but also briefly topped $1,400 during the session.
Tuesday marked the expiration for June gold options, likely contributing to volatility in the market. Floor trading was closed for Monday’s U.S. Memorial Day holiday.
Gold prices last week climbed about 1.6%, the best weekly performance since the week ended April 26, on the heels of weaker global equities and a decline in the dollar. Still, gold futures have fallen more than 6% this month.
Gold prices settled lower Tuesday as the U.S. dollar rose against key rivals, including the Japanese yen. Dollar-denominated gold and other commodities usually move lower when the dollar rises as it makes them more expensive for holders of other currencies to buy.
Bank of America Merrill Lynch also cut its 2013 forecast on gold by 12% to $1,478 an ounce. The analysts said “higher growth, rising nominal yields and subdued inflationary pressure have all limited investor buying.”
A rally in stocks in Europe and Asia on Tuesday, and sharp gains on Wall Street contributed further pressure on gold, luring investors away from the precious metal.
Data Tuesday helped to draw more attention away from gold. The U.S. consumer-confidence index climbed to a five-year high of 76.2 in May from an upwardly revised 69.0 in April, the Conference Board said Tuesday. Separate data showed that U.S. home-price growth was the fastest in nearly 7 years, with the S&P/Case-Shiller 20-city composite up 1.4%.
MCX June gold futures may open today’s session near Rs 26480 levels with resistance near Rs 26590 levels and support near Rs 26400 levels.

Dollar Boosts Gold; Floor Trading Closed

Gold got a boost in the thin trades today helped by weakness in the US dollar and also as the central banks increase gold reserves.
Russia, Kazakhstan and Azerbaijan increased their gold reserves in April, according to data on the International Monetary Fund website on Monday. Russia bought 269,000 troy ounces--bringing its reserves to 31.8 million ounces. Kazakhstan added 85,000 ounces. Its stocks are now 4 million ounces.
The Republic of Azerbaijan bought 32,000 troy ounces last month--increasing its reserves to 129,000 ounces, the latest IMF figures showed. It was the fourth consecutive month of purchases by Azerbaijan's central bank. In December it had no reserves.
Holdings at Turkey's central bank rose 586,000 ounces in April to 13.73 million ounces. It has begun accepting gold as collateral from commercial banks and analysts said this is the main reason for recent increases rather than purchases.
Gold futures for August delivery are trading at $ 1392.3 down $5.7 on the Comex division of the New York Mercantile Exchange. On Friday, it edged down 0.5% to settle the week at $1,387.50 a troy ounce. The metal is likely to find support near $1340 levels and resistance near $1415 levels in the near term.
Despite Friday’s modest decline, gold futures rose 2.15% on the week, the biggest weekly advance in a month, due mostly to a broadly weaker U.S. dollar.
The Japanese yen edged higher Monday, extending gains following the U.S. dollar’s worst weekly performance against its rival in about a year. The dollar bought 100.99 yen, down slightly from ¥101.09 on Friday. Last week, the dollar dropped roughly 1.7% against the yen.
In the week ahead, gold traders will be focusing on a flurry of U.S. economic data, including reports on the housing sector, consumer confidence and initial jobless claims. There will be no floor trading in New York on May 27 because of the Memorial Day holiday. All electronic transactions will be booked with May 28 trades for settlement.
MCX June gold are trading up Rs 11 at Rs 26417 per 10 grams. It may face a resistance near Rs 26470-500 levels with support near Rs 26340 levels.

Gold remained under pressure in the Asia electronic trades today weighed down by strength in the US dollar after the U.S. Federal Reserve indicated that the central bank could start tapering stimulus efforts in the coming months.
Gold futures for delivery in June lost $1, or 0.1%, to sell for $1,366.40 an ounce in electronic trade during Asian hours. The metal ended down $10.20, or 0.6%, at $1,370.10 an ounce, after Federal Reserve Chairman Ben Bernanke, during his time before a congressional committee, said the bank may wind down the pace of bond purchases in the “next few meetings,” though the decision would depend on economic data.
Earlier Wednesday, gold jumped to more than $1,400 after Bernanke said premature tightening of Fed policy “would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further.”
The dollar rallied after Bernanke’s statement, making gold and other dollar-denominated commodities more expensive for holders of other currencies to buy. The ICE dollar index, a gauge of the greenback’s movement against six other major currencies, built on Wednesday’s gains by rising to 84.477 from 84.251.
On the economic front today, China's manufacturing activity was contracting in May, according to preliminary data released Thursday, as HSBC's "flash" Purchasing Managers' Index fell to a seven-month low of 49.6 from April's final reading of 50.4. A result below 50 signals contraction.
MCX June bullion futures may open above Rs 26000 with resistance near Rs 26050-90 levels and support near Rs 25900 levels.

Gold Continues Downward Rally

Gold futures continued its downward rally on the final day of the week, as the rally in dollar and the equity markets eat away demand for the metal.
Gold for June delivery are trading down $10 at $ 1377 per ounce on the New York Mercantile Exchange. Yesterday, it shed $9.30, or 0.7%, to settle at $1,386.90 an ounce. Including Thursday’s loss, prices have fallen 5.9% in six straight trading sessions. They settled Thursday at their lowest since April 17.
The decline followed news of a decline in the U.S. inflation rate as well as a recent string of gains in U.S. equities that has drawn attention away from gold. U.S. consumer prices fell 0.4% in April, according to the Labor Department. The inflation rate over the past 12 months fell to 1.1% in April from 1.5% in March, marking the lowest level since November 2010.
Other data Thursday showing a jump in weekly U.S. jobless claims, a negative reading on a regional manufacturer business conditions index and a weaker dollar didn’t provide much support for the precious metal.
Jobless claims climbed to a six-week high and the Philadelphia Federal Reserve’s index of business conditions turned negative in May for the first time since February.
Meanwhile, the World Gold Council said in a report on Thursday that investors during the first quarter didn’t buy enough physical gold to offset outflows from gold-exchanged traded funds. Total world gold demand was 963 metric tons in the first quarter, down 13% from the same time a year ago, according to the report.
But the World Gold Council also said total ETF gold holdings in the first quarter were higher than the year-ago period, and demand for jewelry, bars and coins increased.
MCX June bullion futures may open today’s session near Rs 26070 levels with support around Rs 25970 and Rs 25920 levels.

Gold Eases To Two-Week Low

MCX Gold futures slipped in tune with the global prices as a broad retreat continued for the red metal amid a pullback in global stock markets. The metal had witnessed a sizeable fall in the last week, extending a drop from its highs around $1490 per ounce amid strength in US dollar and a continued outflow in major gold exchange trades funds. The metal fell to a two-week low of $1418 per ounce on Friday and remained depressed today. The benchmark COMEX futures slipped from highs near $1450 per ounce and currently trade at $1433.20, down $3.40 per ounce on the day.

Even as the prices have recovered in last few weeks, the declines in holdings in gold-backed exchange-traded funds remained a concern in the market. Gold holdings in the SPDR Gold Trust fell to 1051.65 tons on Friday lingering around their four-year low.

The Asian markets witnessed a mixed set of data from China. The industrial production in the country witnessed a smaller-than-expected rise in April, underlining worries that the economy may be losing steam. Output rose 9.3% from a year ago, which was up from March's figure of 8.9% but below market forecasts for a 9.5% rise. Fixed-asset investment also weakened in the first four months of 2013. However, the Chinese retail sales increased in line with expectations by an annualised 12.8% in April, up on the 12.6% rate witnessed in the previous month.

Meanwhile, India's trade deficit in April soared more than 70% from March as imports of gold and silver shot up over two times. The deficit widened to $17.8 billion from $10.31 billion in March. Imports in April rose 10.9% from a year earlier to $41.95 billion. That was mainly because of a sharp increase in the imports of gold and silver — India imported $7.5 billion worth of gold and silver in the past month, compared with $3.1 billion in the year-earlier period.

This is concurring with the fact that demand in the country after a ferocious drop in mid April has held very well. However, this data failed to prop up the prices must on Akshay Tritiya- considered a very good occasion to buy the yellow metal in India. The benchmark MCX Gold futures fell in a hurry, breaking under 26900 per 10 grams mark in early moves. The metal tanked to a low of Rs 26676 per 10 grams and edged up to trade at Rs 26772 per 10 grams right now, down Rs 227 or 0.84% on the day with a massive 17% increase in the open interest.

Gold Extends Decline As Dollar Gains

Gold futures extended decline in the Asia electronic trades today as the US dollar stretched its last week’s gains against the Yen and Australian Dollar.
The ICE dollar index , which measures the U.S. dollar’s moves against six other major currencies, rose to 83.268, up from 83.132 late Friday in North America. Ahead of the figures, the Aussie traded at its lowest level against the U.S. dollar in about a year, buying 99.84 U.S. cents. It bought $1.0026 late Friday after briefly falling below the $1 level.
The U.S. dollar may react later Monday to data from China on industrial production and retail sales in April. Hours after those reports are expected to be released, the U.S. Commerce Department’s report on retail sales for April is due.
Gold for June delivery is trading down $9 at $ 1428 per ounce on the Comex division of the New York Mercantile Exchange. The metal is likely to find support near $1400 and $1370 levels. On the week, gold futures lost 1%, the first weekly decline in three weeks.
On Friday, gold futures for June delivery tumbled 1.5% to settle the week at $1,446.65 a troy ounce. Earlier on Friday, Comex gold fell by as much as 3.4% to hit a session low of $1,418.65 a troy ounce, the weakest level since April 24.
In the week ahead, gold traders will be focusing on a flurry of U.S. economic reports, including data on retail sales, building permits, jobless claims as well as a closely watched report on consumer sentiment.
MCX June delivery gold futures may open today’s session near Rs 26900 levels with support around Rs 26800-750 levels.

Gold Dips On Profit Selling, Strong Green Back

Gold futures edged lower in range bound trade on Thursday, with investors hesitant to extend the previous session's strong gains as bearish chart signals remained intact. The Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at $1,469.15 a troy ounce, down 0.3% on the day. Comex gold prices held in tight trading range between $1,467.55 a troy ounce, the daily low and a session high of $1,474.85 a troy ounce. Euro was quoting at $1.31, down 0.08% from last close. Global equities are in mixed trend with majority are marginally in red while commodities also shows same line of trend with copper and crude are down. Meanwhile, COMEX July silver quotes at $24.07, up 0.39% from last close. Gold futures rose more than 1.5% on Wednesday to hit a high of $1,475.55 a troy ounce, amid indications of surging demand for the precious metal in China, the world's second largest gold consumer. However, investors were hesitant to enter the market as the precious metal continued to trade below the key psychological $1,500-level, indicating chart signals remain bearish.
The demand for the metal from retail quarters has been soaring following a massive crash in prices during the middle of last month. Demand for gold coins and bars from India and China, the top two consumers have been highly impressive over the last few weeks. The crash in gold prices was triggered by speculative traders operating in the futures markets, according to an update from the WGC.
Chinese gold imports are likely to swell further after more than doubling to an all-time high in March as retail consumers pounced when prices plunged to a two-year low last month. China is the world's second largest buyer after India, and in both countries the steep fall in international gold prices in April unleashed years of pent up demand for coins, bars and jewellery. That will help bolster prices for the metal, which has been abandoned by funds in other parts of the world in the wake of its historic fall. “Physical demand picked up significantly over the last couple of weeks. Consumers and industrial users tend to see price drops as buying opportunities,” Zhang Bingnan, secretary-general of the China Gold Association.
Local gold futures failed to sustain Rs 27,200 mark level for the benchmark June Gold on MCX. Weak rupee which trades at above Rs 54.24 mark, up 0.17% from last close, limited the steep fall in the prices. MCX June Gold quotes at Rs 27,120, up Rs 26 from last close. Local gold futures may find support at Rs 27,000, Rs 26,900 and resistance at Rs 27,240, Rs 27,300 level. Silver futures are trading higher following their global trends, July Silver contract trades at Rs 45,275, up Rs 361 or 0.80% from last close.

Gold Down Mildly On Profit Taking

Gold futures are trading mildly lower in the Asia electronic session today as traders booked profit after the counter surged nearly 2% yesterday. The rate cuts by two central banks also proved bullish for the metal.
The Bank of Korea and Bank of Australia slashed their rates today and yesterday respectively. The Bank of Korea on Thursday cut its key interest rate by a quarter-point to 2.5%. Korean stocks were higher after Thursday's rate decision, with the Kospi Composite Index up 0.3% at 1,962.05.
Also yesterday, the Reserve Bank of Australia lowered rates surprising the markets. The RBA trimmed the policy cash rate by a quarter-point to 2.75%, with Gov. Glenn Stevens citing soft economic growth, tame inflation, “subdued” credit demand, and a historically high level for the Australian dollar.
“Growth in Australia was close to trend in 2012 overall, but was a bit below trend in the second half of the year, and this appears to have continued into 2013,” Stevens wrote in a statement accompanying the decision, adding that employment growth has failed to keep up with population gains.
On the data front today, China's consumer price index rose slightly more than expected in April, while wholesale prices extended their fall. The April CPI showed a gain of 2.4% from a year earlier, led by a 4% rise in food prices, the National Bureau of Statistics said Thursday. The gain was more than March's 2.1%, though below February's spike of 3.2%.
The producer price index, meanwhile, fell by the most since October, dropping 2.6% against a decline of 1.9% in March. Chinese shares lost ground after the numbers, which would tend to reduce the odds of Beijing maintaining a loose monetary policy.
MCX June gold may open today’s session near Rs 27180 with support near Rs 27100 and Rs 26850 levels.

Gold Trades Higher On Bargain Buying

Gold futures traded higher on weak green back and physical demand. Strong gains in global equity markets triggered some profit taking in Gold, however, prices gained back on strong buying support. Equities gained further on the reports of ECB proposed buy plan of bad loans. The European Central Bank could soon be buying bad loans from struggling southern European nations in an effort to spur lending to businesses, German newspaper Die Welt reported on Wednesday, citing central bank sources. In addition to encouraging a revival of the asset-backed securities market, the ECB's Governing Council is also discussing, if the central bank could buy some of the securities itself, according to Die Welt. Gold futures lost more than 1% on Tuesday, as investors sold the precious metal amid a weak technical outlook. Gold investors later Wednesday may watch for comments on the market from hedge-fund billionaire John Paulson at a conference in Las Vegas. COMEX June Gold quotes at $ 1458.65, up $9.75 or 0.67% from last close, after trading in the range of $1446.95-1461.25 an ounce. Meanwhile, the silver quotes at $23.84, up 0.052 an ounce from last close. Euro currently quotes at $1.31, up 0.35% from last close.
MCX Gold bounced back from the previous losses on bargain buying triggered by strong global cues. The June Gold quotes at Rs 26,850, up Rs 128 or 0.49% from last close. Technically, the counter may edge up near Rs 26,970-27,050 and may find support in the range Rs 26,720-26,550 level. MCX Silver traded with marginal gains, after ending down 0.68% on last day. June Silver currently trades at Rs 44,873, up Rs 18 from last close.

Gold Inches Up In Asia

Gold futures inched up in the Asia electronic session today buoyed by the data optimism and a record finish in US equities yesterday.
An ounce of gold on the COMEX division of the New York Mercantile Exchange is trading up $ 5.9 at $ 1454.7 in early electronic trades today. However the metal has been trading in a tight range of $1440-1490 level for nearly 2 weeks.
Japanese stocks rallied on toward five-year highs Wednesday, outperforming other Asia markets. The Nikkei Stock Average climbed 1.4% to 14,371.65 in Tokyo late morning trade, climbing further a day after it soared 3.6% to finish at its highest level since June 2008.
The Shanghai Composite rose 0.2%, and Hong Kong’s Hang Seng Index added 0.6%, after official data showed China posted a trade surplus of $18.16 billion in April. Exports jumped 14.7% from a year-earlier and imports rose 16.8%, with both exceeding expectations.
Meanwhile, Reserve Bank of Australia lowered rates on Tuesday, surprising the markets. The RBA trimmed the policy cash rate by a quarter-point to 2.75%, with Gov. Glenn Stevens citing soft economic growth, tame inflation, “subdued” credit demand, and a historically high level for the Australian dollar.
“Growth in Australia was close to trend in 2012 overall, but was a bit below trend in the second half of the year, and this appears to have continued into 2013,” Stevens wrote in a statement accompanying the decision, adding that employment growth has failed to keep up with population gains.
MCX June gold futures may open today’s session near Rs 26790 levels with resistance near Rs 26850 levels and support near Rs 26710 levels.

Gold Tops $1400, Gains In Dollar Could Trim Upside

MCX Gold futures witnessed a recovery from intraday lows yet again as retail buyers poured in the major cities in India, particularly in Mumbai. Asian and European markets eked out small gains and COMEX Gold was also seen adding to its bounce from two and half year lows. The metal managed to test highs above $1400 per ounce and currently trades at $1388.80, up $6.10 per ounce on the day.

Extraordinarily loose monetary policy risks sparking credit bubbles, which threaten to tip the world back into financial crisis, the International Monetary Fund warned yesterday. In its global financial stability report, the fund cautioned that further policy reforms were needed urgently to restore long-term health to the financial system before the long-term dangers of monetary stimulus materialised.

The IMF noted that the global financial crisis could morph into a more chronic phase, marked by a deterioration of financial conditions and recurring bouts of financial instability. In the short term, however, the fund is more upbeat. José Vinals, IMF head of financial stability, noted that spring has arrived to global financial markets where after very rainy days and threatening clouds, we are beginning to see some blue skies and more sunny days.

Meanwhile, US data showed that the business among manufacturers in the Philadelphia region softened slightly in April, the Philadelphia Federal Reserve said Thursday. The bank's business-conditions index edged down to 1.3 from 2.0 in March, though any reading above zero indicates that manufacturers are still expanding. The Fed reported that the index for new orders fell to negative 1.0 in April from 0.5 in March.

The US dollar is quoting just above 1.3000 levels against the Euro, holding onto its latest gains and could trim intraday gains for the yellow metal. MCX Gold futures fell near its recent low yet again buy swing back. Prices are quoting at Rs 25616, down Rs 63 per 10 grams or 0.25% on the day or with 3.54% increase in the open interest. Spot rates in Mumbai are around Rs 26300, excluding VAT and local taxes and with not much of a fall emerging over last two days, cash buying is picking up.

Gold Recovers Near $1400 After Blood Bath

MCX Gold futures are up around 1.50% on the day after a freakish slide ended in global markets and some buying finally emerged. The COMEX Gold prices recovered from a two and half year low of $1321.50 per ounce in Asian trades. Equities were mixed throughout the day today on the back of a torrid collapse in US stocks. Traders seemed to have gotten adjusted to the frantic moves in last few sessions and Gold was seen picking up strength in response to its traditional friend - a weak US dollar. COMEX Gold is up nearly $80 per ounce in intraday moves and quotes at $1394.90, up $35.20 per ounce on the day.

In a key development in global markets, the leading global futures exchange- CME said it will raise the collateral requirements for trading in benchmark gold, silver and other precious metals futures contracts, effective at the close of business Tuesday. The exchange also said it also will increase margins to trade its benchmark natural-gas futures, also effective Tuesday. Margins to trade benchmark Comex 100-troy ounce gold futures will be increased by 19%, CME said in a notice emailed late Monday. The margin to trade silver will increase 18%.

Gold was hammered heavily for a second session yesterday as a massive sell off was triggered once the metal broke under $1500 per ounce levels. The counter lost nearly $140 per ounce on the day- its biggest slide in nearly three decades. US stocks also dropped like a rock after Chinese economic data came in weaker than expected. The country's GDP for the January-March quarter rose 7.7% from a year earlier, weakening from 7.9% growth in the fourth quarter. Industrial production for March increased 8.9% from the year-earlier period, the weakest in more than a year and slowing from a 9.9% average rise for the January-February period.

Locally, panic struck the retail markets when the prices fell under Rs 26000 per 10 grams- its lowest level in nearly two years. Macro data also showed that India's headline inflation slowed to the lowest rate in more than three years in March, spurring expectations that the Reserve Banks of India will cut policy interest rates next month to help the economy recover from its slowest growth in a decade. Wholesale prices, country's key inflation measure, eased to 5.96% in March aft, the lowest rate since November 2011.

The media reports revealed yesterday that India's gold imports have fallen nearly 24 percent in the first quarter of the current year. It will be interesting to see if the local gold traders and bullion merchants buy the commodity in bulk after the recent meltdown. MCX Gold is up today after falling as low as Rs 25270 per 10 grams. This marked a drop of around Rs 5000 over last one month. Some buying picked up thereafter and the metal is now quoting at Rs 25999, up Rs 365 per 10 grams or 1.42% with 1.21% increase. Some minute buying is emerging in the counter.

Gold Bear Run Starts

Stretching into the third session of losses, the yellow metal seems to end its 12 year long bull run with the panic selling taking it down by as much as $179 an ounce in late trade on Monday to a fresh 27-month low.
Today, as well it opened down, trading at $ 1347 per ounce on the COMEX division of New York Mercantile Exchange. The gold price is down more than 18.7% this year and Friday's sharp decline dragged the metal it into official bear territory, defined as a 20% decline from a high.
U.S. stock indexes fell the most in five months Monday, swept up in a rush out of gold, oil and other commodities, after reports from China showed the industrial giant's growth had cooled. The Dow Jones Industrial Average ended near its lows of the day, down 265.86 points, or 1.8%, to 14,599.20. The S&P 500 index sank 36.49 points, or 2.3%, to 1,552.36. The Nasdaq Composite fell 78.46 points, or 2.4%, to 3,216.49.
Soured sentiment built as the session wore on, exacerbated by a drop in a gauge of U.S. home builders' confidence. Some strategists said the pullback was expected after stock indexes notched records last week.
CME Group Inc. said it will raise the collateral requirements for trading in benchmark gold, silver and other precious metals futures contracts, effective at the close of business Tuesday.
Margins to trade benchmark Comex 100-troy ounce gold futures will be increased by 19%, CME said in a notice emailed late Monday. The margin to trade silver will increase 18%, palladium will increase 14% and platinum will increase 19%. Natural-gas futures will increase 5.6%
Futures exchanges like CME keep tabs on market volatility as they determine how much collateral, or margin, traders must deposit to back up trades. When markets like gold begin to rapidly swing, exchanges may decide that customers need a bigger cushion to cover changes to their positions.
Gold hit a record $1,909 an ounce intra-day on 23 August 2011, but a the next day suffered one of few triple digit one-day losses when it plummeted $105, ending the week down more than 10% from the all-time high.
For 10 years the price of gold shot up, aided especially by the stock market meltdown of 2009. After hitting its high in August 2011, gold saw a gradual decline as the stock market rose into record territory. Then it plummeted 25% last week, indicating growing global economic weaknesses.
MCX June gold futures may open today's session near Rs 25400 levels with support around Rs 25100 levels.

Gold Flat As Fed Minutes Loom

Gold futures are trading flat in the Asia electronic session today as the Fed meeting minutes of March 20 meeting loom.

Gold for June delivery are trading flat at $ 1586.7 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it gained $14.20, or 0.9%, to settle at $1,586.70 an ounce.

It erased Monday’s 0.2% loss and prices marked their highest settlement since the first day of the month, when they closed above $1,600.

The dollar also slipped against the Australian dollar on Tuesday after Chinese consumer inflation data for March came in below expectations. The Aussie is sensitive to Chinese economic indicators as China is Australia’s largest trading partner.

On the data front today, China swung to a trade deficit of $880 million in March, the General Administration of Customs reported Wednesday, as imports surged 14.1% from a year earlier. The deficit followed February's $15.2 billion surplus. The gain in imports fell more than 15% in February. Exports rose 10% from March 2012.

For the week ahead, gold investors will be looking for minutes due Wednesday from the U.S. Federal Reserve's meeting on March 20, at which monetary policy makers decided to continue with its program of buying $85 billion a month in assets.

MCX June gold futures may open today’s session near Rs 29600 levels with resistance near Rs 29650 and support near Rs 29550-500 levels.

Gold Up Marginally On Japan Easing

Gold futures are trading marginally higher in the Asia electronic session getting support from the recent monetary easing in Japan which took Yen to 4 year lows.

Japan’s currency fell Tuesday, struggling at four-year lows against the U.S. dollar as it extended its dive in the wake of fresh Japanese monetary stimulus. The U.S. dollar bought 99.40 yen in Asian trade, compared with ¥99.21 in North American trade late Monday.

As the greenback toyed with the ¥100 level, Japan’s Finance Minister Taro Aso hinted Tuesday that policy makers are unlikely to seek to slow the pace of the yen’s decline. Aso said the yen was correcting after a period of excessive strength.

The central bank last week said it would increase the amount of its longer-term holdings of Japanese government bonds from ¥89 trillion ($900 billion) at the end of December to ¥190 trillion in two years’ time. The euro also rose against the yen Tuesday, fetching ¥129.73, up from Monday’s level of ¥129.01 and nearing its own psychologically important handle of ¥130.

Gold for June delivery are trading up $2.2 at $ 1574.7 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it fell $3.40, or 0.2%, to settle at $1,572.50 an ounce.

Gold futures fell on Monday, marking their fourth loss in five trading sessions, as a stronger dollar and continued outflows from exchange-traded funds helped fuel a pull back in the wake of a strong rally late last week.

Gold finished Friday’s session up $23.50, or 1.5%, at $1,575.90 an ounce after the U.S. Labor Department said the economy created 88,000 new jobs in March.

MCX June gold futures may open today’s session near Rs 29530 levels with resistance near Rs 29600-700 levels.

Mumbai, Chennai, gold, silver price

In Mumbai on Monday (08 April 2013), the standard gold was traded at Rs 29,400 for 10 gm and pure gold at Rs 29,550 for 10 gm. Silver spot was traded at Rs 52,500 for 1 kg.

In Chennai, bar silver was traded at Rs 51,535 for 1 kg and retail silver at Rs 55.10 per gm. The standard gold was traded at Rs 29,510 for 10 gm, while the retail ornament gold was traded at Rs 2,759 per gm.

Turnover slows down first time in five years: FMC

 Turnover in major exchanges slowed down for the first time in last five years.

The forward Markets Commission (FMC) data for the fiscal year ending 2012-13 showed that the turnover of commodity exchanges declined by 6 per cent  to Rs 170.46 lakh crore in the last fiscal.

The main reason behind slowdown was the lower participation of Gold and Silver trades.

The turnover of commodity bourses was Rs 181.26 lakh crore in 2011-12. Heavy volatility in Gold and Silver prices affected the volumes in these commodities.

Business of Crude oil grew by 32 per cent to Rs 37.68 lakh crore in 2012-13 compared to Rs 28.51 lakh crore in 2011-12.

Turnover of Copper was Rs 32.6 lakh crore in 2012-13, up 13 per cent from Rs 28.61 lakh crore in 2011-12.

MCX Gold Witnesses Modest Correction After Latest Gains

MCX Gold futures slipped slightly in the early moves, giving up after a massive rally in the Friday's session. Gold futures got a boost on the disappointing jobs data, which put to rest recent sentiments that the Federal Reserve may consider tightening policy in the coming months. The U.S. Bureau of Labor Statistics reported earlier the economy added 88,000 nonfarm payrolls in March, way below expectations for a gain of 200,000 and below the 268,000 jobs added in February. The metal edged up at a ferocious pace following this, adding nearly 30 dollars in intraday moves. The counter currently quotes at $1576.90, up $1 per ounce on the day.

The US non farm data revealed that the private sector added 95,000 jobs last month, after an increase of 254,000 in February, missing expectations for a 209,000 rise. The report also showed that the U.S. unemployment rate ticked down to 7.6% in March, from 7.7% the previous month, as more Americans left the labor force. The news sent the dollar falling and gold rising on expectations for the Federal Reserve to keep monetary stimulus programs in place, including its USD85 billion monthly bond-buying program that weakens the greenback as a side effect.

The June COMEX gold futures had tumbled to 10 month low of $1539.4 earlier this week, however it jumped back to end the fortnight at $1575.9 an ounce. It rallied to a one-month peak in March on worries about fiscal stability in Europe, as politicians scrambled to clinch a bail-out for Cyprus. Fear that central banks' money-printing to buy assets will stoke inflation has been a key driver in boosting gold, which rallied to an 11-month high in October after the Fed announced its third round of aggressive economic stimulus.

The international gold prices are down nearly $80 from its last year's level as the US dollar has appreciated. The June COMEX gold futures are trading at $ 1575.9 an ounce as on 5th April 2013 whereas last year the metal has been trading near $1650 an ounce levels. The US dollar has gained nearly 2% in April 2013 compared to the same period last year.

There could be some upside resistance for the yellow metal after the massive array of gains seen on Friday. The US dollar is quoting just under 1.3000 levels against the Euro, coming off its two-week low levels. MCX Gold futures slipped as the Rs 29800 barrier yet again triggered a correction. The counter quotes at Rs 29707, down Rs 60 per 10 grams on the day with 1% drop in the open interest.

Commodity Jackpot Call: Key levels for Gold on Apr 5

MCX April Gold futures rebounded sharply after hitting oversold territory on Wednesday.

As per the charts, Gold needs to sustain above Rs 28,970-levels for maintaining yesterday's strength.

In case, MCX Gold April futures slip below Rs 28,970, and the next key support is at Rs 28,880.



On the upside, April futures may look to bounce to Rs 29,170-odd levels.

The key levels for MCX Gold June Futures today are - support around Rs 29,290-29,255-29,215; resistance around Rs 29,520-29,555-29,590.

Similarly, GoldM May futures may seek support around Rs 29,070-29,035-29,005, while face resistance around Rs 29,270-29,300-29,335.

Commodity Call: Silver may retest Rs 50,500

Despite, yesterday's pull-back bears continue to hold the upper-hand on Silver.

The white metal is likely to witness some selling pressure, and could even re-test Rs 50,500-odd levels in trades today.

On the upside, Silver needs to break and sustain above Rs 51,200, in order to arrest the current bear phase.


Today Silver MCX May futures may seek support around Rs 50,750-50,700-50,630, while face resistance around Rs 51,150-51,215-51,280.

MCX Silver Micro April futures may seek support around Rs 50,765-50,700-50,630, while face resistance around Rs 51,200-51,275-51,350.

Gold Slippery Ahead Of Payrolls

Gold stayed on a slippery note ahead of the widely watched U.S. unemployment report for March. The strength in the US dollar also weighed on the sentiments.
Investors look to nonfarm payroll figures for any hints as to when the Federal Reserve will taper down its asset purchases. The traders await the U.S. Labor Department’s unemployment report for March, due later Friday. On Thursday, weekly jobless claims rose to a four-month high, raising concerns that already-sluggish levels of hiring in the U.S. may be slowing.
In February, US non-farm payrolls rose by 236,000; the market is going for another increase, albeit a smaller one of 190,000, for March. That consensus view may ease lower, however, after Wednesday's employment report from payrolls processing firm ADP indicated only 158,000 workers were added to private sector payrolls in March.
That increase was the smallest since October of last year and was way below the 190,000 to 200,000 economists had been forecast. Having said that, the ADP report is, at best, an often unreliable harbinger of trends in the official US non-farm payrolls data. The US unemployment rate is expected to remain unchanged at 7.7%.
The dollar index, which measures the U.S. currency against a basket of six major rivals, was up 0.2% at 82.862 during Asian trading Friday. The dollar also extended its climb against the Japanese yen, which tumbled in the wake of the Bank of Japan’s aggressive monetary easing plan announced Thursday.
Gold for June delivery is trading down $2 at $ 1550 an ounce levels during Asian morning trading hours on the Comex division of the New York Mercantile Exchange. Yesterday, it fell $2, or 0.1%, to $1,550.40 an ounce.
Prices settled Thursday’s session down $1.10 at $1,552.40 an ounce, but they managed to pare losses during the final minutes of trading, as the U.S. dollar lost more ground against the euro. Gold on Thursday marked its third consecutive decline and was on track for a loss of nearly 3% for the week.
MCX June gold futures may open today’s session near Rs 29340 levels with support near Rs 29300-250 levels and resistance near Rs 29400 levels.

Silver, Brent Crude weak in early trade

The Comdex index has declined over 0.2 per cent at 3,670.

The MCX Energy index has dropped nearly 0.5 per cent at 3,637. The MCX Metal index has moved down 0.2 per cent at 4,778.

The MCX Agri index is marginally up at 2,259.

Cardamom April futures has advanced 0.4 per cent at Rs 902.

Mentha Oil May futures has gained 0.2 per cent at Rs 998.

CPO and Aluminium May futures are almost flat at Rs 462 and Rs 103, respectively.

On the other hand, Silver 1000 May futures has tumbled over 1.7 per cent at Rs 51,0001.

Brent Crude Oil May futures has dropped over 1.2 per cent at Rs 5,934.

Gold Petals Delhi April futures has shed nearly a per cent at Rs 2,890.

Commodity Jackpot Call: No respite for Silver

Silver continues to trade with a fairly negative bias as the white metal is trading below the lower-end of the Bolling Band for the fifth straight day.

The bears are likely to have the upper-hand as long as MCX Silver May futures trade below Rs 51,700.

Click Here for the live Silver MCX prices.

However, select key momentum oscillators like the MACD and 14-day RSI have entered heavily oversold territory.

Hence, a sharp pull-back from intra-day support levels cannot be ruled out.

Today Silver MCX May futures may seek support around Rs 50,330-50,210-50,085, while face resistance around Rs 51,115-51,235-51,350.

MCX Silver Micro April futures may seek support around Rs 50,345-50,225-50,100, while face resistance around Rs 51,140-51,265-51,390.

Gold Cuts Losses On Japan Easing

Gold futures cut the losses made earlier in the session as soon as the news came that the Bank of Japan decided to launch an aggressive easing program. Monetary easing boosts inflation which is in turn is positive for gold.

With Japan's interest rates pushed near zero, purchases of Japanese government bonds (JGBs) and other assets have been the main way the central bank has sought to help stimulate the economy and end the chronic price falls that have undercut growth.

Among the key measures agreed upon at Kuroda's inaugural policy-board meeting was an expansion of its government bond purchases, including buying longer-term debt. The meeting was one of the most closely watched in the post-war history of the central bank after Kuroda promised “bold” actions to create a 2% inflation rate.

Markets reacted sharply to the move, with the dollar rising to 94.46 yen from ¥92.90 just ahead of the decision, while the Nikkei Average swung from heavy losses to a close with a 2.2% gain.

The central bank said it would buy JGBs so that their amount outstanding will increase at an annual pace of about ¥50 trillion ($530 billion). Kuroda planned to explain the latest steps at a post-policy-meeting news conference later in the day.

Monetary easing is one piece of the “three arrow” strategy of Prime Minister Shinzo Abe to end Japan's two lost decades after the financial bubble burst in the early 1990s. Kuroda has vowed to do “whatever it takes” to meet the 2% inflation goal, which is part of a pact signed between the government and the Bank of Japan in January.

Gold for June delivery is trading down just $1.2 at $ 1552.3 an ounce on the Comex division of the New York Mercantile Exchange. The counter may now test resistance near $1580 - 1600 levels today. Yesterday it fell $22.40, or 1.4%, to settle at $1,553.50 an ounce. That was the lowest settlement for a most-active contract since June 28.

MCX April bullion also pared losses and jumped to as high as Rs 29300 levels. The counter should face a stiff resistance near Rs 29340 levels today.

Gold Trade To Three And Half Week Lows

MCX Gold futures extended their losses as the COMEX futures tested their three and half month lows. The metal was dominated by the settlement related trading activity and gains in overnight US markets also hurt the appeal of the commodity. The metal has dropped by around 35 dollars in last two sessions now. The COMEX Gold failed to hold on to its one month high above $1600 per ounce in the last week and a firm undertone in the US dollar is not helping the metal much either. The counter quotes at $1570.10, down $5.80 per ounce on the day. Prices corrected nearly 25 dollars in the last session.

US stocks jumped to all time highs yesterday and traders sold off gold rapidally in the awe of the near month futures settlement. Meanwhile, the US dollar consolidated just above 1.2800 levels against the Euro. Eurostat said that the euro zone's unemployment rate held steady at a seasonally adjusted 12 percentage in February, unchanged from January but still at record highs. Eurozone showed a marginal improvement in PMI numbers at 46.8 in March compared to 46.8 in February. The numbers are still below 50 mark that is treated as the borderline above which it is treated as growth. Further on the negative front, the PMI data indicated an overall deterioration in German manufacturing business conditions, largely reflecting a renewed decline in new orders and stagnation in production volumes.

North Korea said yesterday that it intended to restart a nuclear reactor closed in 2007 and hinted it may begin openly enriching weapons-grade uranium at a time of soaring military tensions. A nuclear energy spokesman said the move would involve readjusting and restarting all the facilities at the North's main Yongbyon nuclear complex, including a uranium enrichment plant and a five megawatt reactor.

MCX Gold futures for June, the recently turned benchmark contract slipped under Rs 30000 per 10 grams level yesterday and dropped nearly Rs 400 amid a heavy sell off in global markets. The counter extended this drop and tanked to Rs 29357 per 10 grams today. The commodity is quoting at Rs 29507, down Rs 98 per 10 grams or 0.33% on the day with 1% increase in open interest. A modest bounce emerged in the afternoon trades as Indian Rupee gave up following heavy losses for local equities.