Gold futures inched up after dropping below $1380 levels yesterday weighed down by strength in the US dollar, on rally in equities and on cut in gold price forecast by Bank of America Merrill Lynch.
for August delivery is trading up $7.9 at $ 1386.8 an ounce on the
Comex division of the New York Mercantile Exchange. It shed $7.80, or
0.6%, to settle at $1,379.70 an ounce. It traded as low as $1,372.80 but
also briefly topped $1,400 during the session.
Tuesday marked the
expiration for June gold options, likely contributing to volatility in
the market. Floor trading was closed for Monday’s U.S. Memorial Day
Gold prices last week climbed about 1.6%, the best weekly
performance since the week ended April 26, on the heels of weaker
global equities and a decline in the dollar. Still, gold futures have
fallen more than 6% this month.
Gold prices settled lower Tuesday
as the U.S. dollar rose against key rivals, including the Japanese yen.
Dollar-denominated gold and other commodities usually move lower when
the dollar rises as it makes them more expensive for holders of other
currencies to buy.
Bank of America Merrill Lynch also cut its 2013
forecast on gold by 12% to $1,478 an ounce. The analysts said “higher
growth, rising nominal yields and subdued inflationary pressure have all
limited investor buying.”
A rally in stocks in Europe and Asia on
Tuesday, and sharp gains on Wall Street contributed further pressure on
gold, luring investors away from the precious metal.
helped to draw more attention away from gold. The U.S.
consumer-confidence index climbed to a five-year high of 76.2 in May
from an upwardly revised 69.0 in April, the Conference Board said
Tuesday. Separate data showed that U.S. home-price growth was the
fastest in nearly 7 years, with the S&P/Case-Shiller 20-city
composite up 1.4%.
MCX June gold futures may open today’s session
near Rs 26480 levels with resistance near Rs 26590 levels and support
near Rs 26400 levels.