Monday, 8 April 2013
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.