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.
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
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
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.
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.
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.
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.