Gold jumped on weak dollar against major currencies amid bargain
buying in the Yellow metal on reports of massive surge in India's gold
imports. The COMEX Gold futures gained above three weeks high of $1,200
mark, after falling near $1,130 mark earlier this month.
The Euro currency gained against the US Dollar on strong economic data released from Euro zone. Euro quotes at $1.2519, up 0.55% and the US dollar index slipped and trades at 87.64, down 0.41% over last day. The ZEW's Indicator of Economic Sentiment for the Euro zone has increased by 6.9 points in November to a reading of 11.0 points. The indicator for the current economic situation in the euro area has decreased by 2.9 points to a value of minus 59.7 points. The German ZEW lead expectations indicator was 11.5 in November, after -3.6 in October. It was the first increase in the index since December of last year. The ZEW indicator of current conditions rose to 3.3 in November from 3.2 in the previous month.
Annual inflation in the U.K. accelerated in October but remained well below the Bank of England's 2% target, official data showed Tuesday, a further sign of subdued price pressures facing central banks around the world. The Office for National Statistics said annual inflation increased to 1.3% in October from 1.2% in September, largely because of smaller declines than a year earlier in prices for fuel and airfares. Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a seasonally adjusted rate of 1.5% last month, unchanged from September.
Japanese Prime Minister Shinzo Abe said Tuesday the government will delay by 18 months a planned increase in sales tax. The move comes after the economy unexpectedly fell into recession in the third quarter. The sales-tax increase to 10% from 8% had been scheduled to take place in October 2015. Abe also said the tax hike will not be delayed again. A previous sales-tax hike to 8% from 5% went into effect in April. Abe will dissolve the lower house of parliament on Nov. 21 and has called for a snap election to be held in December.
The COMEX Gold December delivery quotes at $1,201 an ounce, up $17.50 an ounce and the Silver December delivery quotes at $16.313, up $0.256 on Tuesday.
Local gold prices gained on strong COMEX gold amid reports of higher imports. The MCX Gold December delivery quotes at Rs 26715, up Rs 400 and Silver December delivery quotes at Rs 36222, up Rs 593 per 1 kg. Indian rupee gained afternoon moves with the currency quotes at Rs 61.760, down 0.09%.
India's gold imports jumped in last month amid falling prices and excellent demand ahead of the peak festive season. Gold imports rose 280% to $4.17 billion from $1.09 billion in the year-ago period. However, India's merchandise exports contracted in October—the first time this fiscal year—exerting pressure on the country's trade deficit. The trade deficit widened to $13.3 billion in October from $10.6 billion a year ago, according to data released by the commerce ministry on Monday. During the month, merchandise exports contracted 5% to $26 billion. Imports grew 3.6% to $39 billion, with the growth moderation mainly on account of lower petroleum imports.
The Euro currency gained against the US Dollar on strong economic data released from Euro zone. Euro quotes at $1.2519, up 0.55% and the US dollar index slipped and trades at 87.64, down 0.41% over last day. The ZEW's Indicator of Economic Sentiment for the Euro zone has increased by 6.9 points in November to a reading of 11.0 points. The indicator for the current economic situation in the euro area has decreased by 2.9 points to a value of minus 59.7 points. The German ZEW lead expectations indicator was 11.5 in November, after -3.6 in October. It was the first increase in the index since December of last year. The ZEW indicator of current conditions rose to 3.3 in November from 3.2 in the previous month.
Annual inflation in the U.K. accelerated in October but remained well below the Bank of England's 2% target, official data showed Tuesday, a further sign of subdued price pressures facing central banks around the world. The Office for National Statistics said annual inflation increased to 1.3% in October from 1.2% in September, largely because of smaller declines than a year earlier in prices for fuel and airfares. Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a seasonally adjusted rate of 1.5% last month, unchanged from September.
Japanese Prime Minister Shinzo Abe said Tuesday the government will delay by 18 months a planned increase in sales tax. The move comes after the economy unexpectedly fell into recession in the third quarter. The sales-tax increase to 10% from 8% had been scheduled to take place in October 2015. Abe also said the tax hike will not be delayed again. A previous sales-tax hike to 8% from 5% went into effect in April. Abe will dissolve the lower house of parliament on Nov. 21 and has called for a snap election to be held in December.
The COMEX Gold December delivery quotes at $1,201 an ounce, up $17.50 an ounce and the Silver December delivery quotes at $16.313, up $0.256 on Tuesday.
Local gold prices gained on strong COMEX gold amid reports of higher imports. The MCX Gold December delivery quotes at Rs 26715, up Rs 400 and Silver December delivery quotes at Rs 36222, up Rs 593 per 1 kg. Indian rupee gained afternoon moves with the currency quotes at Rs 61.760, down 0.09%.
India's gold imports jumped in last month amid falling prices and excellent demand ahead of the peak festive season. Gold imports rose 280% to $4.17 billion from $1.09 billion in the year-ago period. However, India's merchandise exports contracted in October—the first time this fiscal year—exerting pressure on the country's trade deficit. The trade deficit widened to $13.3 billion in October from $10.6 billion a year ago, according to data released by the commerce ministry on Monday. During the month, merchandise exports contracted 5% to $26 billion. Imports grew 3.6% to $39 billion, with the growth moderation mainly on account of lower petroleum imports.
