Gold Starts Week On Steady Note

Gold.......

Gold futures started the week on a steady note after ending the week with modestly lower on speculation that the Federal Reserve might end its bond-buying program sooner-than-expected continued to dampen the appeal of the precious metal. Gold futures for April delivery is trading up nearly $6 at $ 1578.2 a troy ounce on the Comex division of the New York Mercantile Exchange. On Friday, it eased down 0.15% to settle the week at $1,575.50 an ounce. Earlier Friday, prices slumped to a daily low of $1,564.20 a troy ounce, the weakest level since February 21, when futures slid to a seven-month low of $1,554.80. On the week, gold futures prices lost a modest 0.2%, the third consecutive weekly decline. Gold prices were likely to find support at $1,554.80 a troy ounce, the low from February 21 and resistance at $1,619.40, the high from February 26. Gold’s losses came after data on Friday showed that the U.S. manufacturing sector expanded at its fastest pace since June 2011 last month, while a separate report showed that U.S. consumer confidence rose in February. The Institute for Supply Management said its manufacturing purchasing managers’ index rose to 54.2 from 53.1 in January, while the final reading of the University of Michigan’s consumer sentiment index came in at 77.6, from a preliminary reading of 76.3. The upbeat data fuelled speculation the Federal Reserve could end its bond-buying program this year, boosting the U.S. dollar and weighing on dollar-denominated commodities. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, ended the week at 82.33, the strongest level since August 20. President Barack Obama warned Friday that federal spending cuts will cause “ripple effects” through the U.S. economy. Obama called on Congress to pass an alternative budget plan that closes tax loopholes and cuts spending, including entitlements. MCX April delivery gold futures may open today’s session near Rs 29800 levels with support around Rs 29740-700 levels. In the week ahead, gold traders will be focusing on interest rate decisions by the European Central Bank, the Bank of England and the Bank of Japan. In addition, Friday’s data on U.S. nonfarm payrolls will be closely watched as investors attempt to gauge the strength of the economic recovery. Powered by Commodity Insights