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.