Wednesday, 8 May 2013

Gold Trades Higher On Bargain Buying

Gold futures traded higher on weak green back and physical demand. Strong gains in global equity markets triggered some profit taking in Gold, however, prices gained back on strong buying support. Equities gained further on the reports of ECB proposed buy plan of bad loans. The European Central Bank could soon be buying bad loans from struggling southern European nations in an effort to spur lending to businesses, German newspaper Die Welt reported on Wednesday, citing central bank sources. In addition to encouraging a revival of the asset-backed securities market, the ECB's Governing Council is also discussing, if the central bank could buy some of the securities itself, according to Die Welt. Gold futures lost more than 1% on Tuesday, as investors sold the precious metal amid a weak technical outlook. Gold investors later Wednesday may watch for comments on the market from hedge-fund billionaire John Paulson at a conference in Las Vegas. COMEX June Gold quotes at $ 1458.65, up $9.75 or 0.67% from last close, after trading in the range of $1446.95-1461.25 an ounce. Meanwhile, the silver quotes at $23.84, up 0.052 an ounce from last close. Euro currently quotes at $1.31, up 0.35% from last close.
MCX Gold bounced back from the previous losses on bargain buying triggered by strong global cues. The June Gold quotes at Rs 26,850, up Rs 128 or 0.49% from last close. Technically, the counter may edge up near Rs 26,970-27,050 and may find support in the range Rs 26,720-26,550 level. MCX Silver traded with marginal gains, after ending down 0.68% on last day. June Silver currently trades at Rs 44,873, up Rs 18 from last close.

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