Sunday, 12 May 2013

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.

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