Wednesday 20 February 2013

Mcx Gold


Gold..


Gold futures were supported above the $1600 an ounce levels in mid Asia session today taking cues from the rally in Asia equities and weakness in the US dollar.
However, strength in the Japanese Yen might hurt the yellow metal. The Japanese currency appreciated against the dollar after comments from Japans Prime Minister Shinzo Abe. He reportedly said Wednesday that the need to set up a public-private fund to buy foreign bonds has declined, sending the yen higher against the U.S. dollar.


The remarks come just two days after Abe had said that the bond purchases -- a controversial move that could potentially weigh on the yen as Japan buys assets denominated in a foreign currency -- were a policy option for the Bank of Japan. The U.S. dollar slid to 93.13 yen, from around 93.42 yen just before Abes comments.
Gold for delivery in April is trading up $3.7 at $ 1607.9 an ounce on the Comex division of the New York Mercantile Exchange. The precious metal fell $5.30, or 0.3%, to settle at $1,604.20 an ounce for its fourth straight loss, although it managed to hold above $1,600 through the trading session.
The settlement was the lowest for a most-active gold futures contract since Aug. 14. Prices lost $26 on Friday, and U.S. markets were closed for Presidents Day on Monday.
On the US economic front later this week, included January housing starts on Wednesday, and the Philadelphia Fed index and leading indicators, both slated for Thursday.
MCX April gold futures opened lower today despite gains in the international counter. It was recently seen trading at Rs 29990 down nearly Rs 65 per 10 grams. The traders may buy it at current levels with the target of Rs 30040 and Rs 30090 and stop loss of Rs 29920. Yesterday, it closed lower by Rs 124 at Rs 30,052 per ten grams. Prices rose to a high of Rs 30,220 per 10 grams and fell to a low of Rs 29,977 per 10 grams during the days trading.
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