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%.
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.
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.