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.

Gold Dips On Profit Selling, Strong Green Back

Gold futures edged lower in range bound trade on Thursday, with investors hesitant to extend the previous session's strong gains as bearish chart signals remained intact. The Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at $1,469.15 a troy ounce, down 0.3% on the day. Comex gold prices held in tight trading range between $1,467.55 a troy ounce, the daily low and a session high of $1,474.85 a troy ounce. Euro was quoting at $1.31, down 0.08% from last close. Global equities are in mixed trend with majority are marginally in red while commodities also shows same line of trend with copper and crude are down. Meanwhile, COMEX July silver quotes at $24.07, up 0.39% from last close. Gold futures rose more than 1.5% on Wednesday to hit a high of $1,475.55 a troy ounce, amid indications of surging demand for the precious metal in China, the world's second largest gold consumer. However, investors were hesitant to enter the market as the precious metal continued to trade below the key psychological $1,500-level, indicating chart signals remain bearish.
The demand for the metal from retail quarters has been soaring following a massive crash in prices during the middle of last month. Demand for gold coins and bars from India and China, the top two consumers have been highly impressive over the last few weeks. The crash in gold prices was triggered by speculative traders operating in the futures markets, according to an update from the WGC.
Chinese gold imports are likely to swell further after more than doubling to an all-time high in March as retail consumers pounced when prices plunged to a two-year low last month. China is the world's second largest buyer after India, and in both countries the steep fall in international gold prices in April unleashed years of pent up demand for coins, bars and jewellery. That will help bolster prices for the metal, which has been abandoned by funds in other parts of the world in the wake of its historic fall. “Physical demand picked up significantly over the last couple of weeks. Consumers and industrial users tend to see price drops as buying opportunities,” Zhang Bingnan, secretary-general of the China Gold Association.
Local gold futures failed to sustain Rs 27,200 mark level for the benchmark June Gold on MCX. Weak rupee which trades at above Rs 54.24 mark, up 0.17% from last close, limited the steep fall in the prices. MCX June Gold quotes at Rs 27,120, up Rs 26 from last close. Local gold futures may find support at Rs 27,000, Rs 26,900 and resistance at Rs 27,240, Rs 27,300 level. Silver futures are trading higher following their global trends, July Silver contract trades at Rs 45,275, up Rs 361 or 0.80% from last close.

Gold Down Mildly On Profit Taking

Gold futures are trading mildly lower in the Asia electronic session today as traders booked profit after the counter surged nearly 2% yesterday. The rate cuts by two central banks also proved bullish for the metal.
The Bank of Korea and Bank of Australia slashed their rates today and yesterday respectively. The Bank of Korea on Thursday cut its key interest rate by a quarter-point to 2.5%. Korean stocks were higher after Thursday's rate decision, with the Kospi Composite Index up 0.3% at 1,962.05.
Also yesterday, the Reserve Bank of Australia lowered rates 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.
On the data front today, China's consumer price index rose slightly more than expected in April, while wholesale prices extended their fall. The April CPI showed a gain of 2.4% from a year earlier, led by a 4% rise in food prices, the National Bureau of Statistics said Thursday. The gain was more than March's 2.1%, though below February's spike of 3.2%.
The producer price index, meanwhile, fell by the most since October, dropping 2.6% against a decline of 1.9% in March. Chinese shares lost ground after the numbers, which would tend to reduce the odds of Beijing maintaining a loose monetary policy.
MCX June gold may open today’s session near Rs 27180 with support near Rs 27100 and Rs 26850 levels.

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.

Gold Inches Up In Asia

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.