Gold.....
Gold futures pulled down further in the early London trades today with the
equities and oil futures also trading lower. The macroeconomic numbers
from U.S. were also in the spotlight on Friday, ahead of a report on
retail sales expected to show a slight decline.
The metal was
unable to break past the $1600 an ounce levels as series of banks cut
the price outlook this week. Investors this week heard from Goldman
Sachs, which dropped its gold forecast for 2013 to $1,545 an ounce, down
from a prior forecast of $1,610. Also, minutes of the latest Federal
Reserve meeting showed members were at odds about when to stop
quantitative easing.
Cyprus also popped back into the headlines
for gold, with the financially troubled country reportedly agreeing to
sell excess gold reserves to help with its bailout efforts.
Goldman's
note followed another major blow to the metal last week from Société
Générale. The French bank declared "The End of the Gold Era" in the
title of its report, positing not just the possibility of a bear market
but an outright crash and saying "gold may have had its last hurrah."
Deutsche Bank and UBS both cut their average gold price forecasts
yesterday, to $1637 and $1740 respectively.
Gold for June
delivery fell $6 to $1,559, on track for a weekly fall of nearly 1% on
the Comex division of the New York Mercantile Exchange. The futures
contract this week settled with gains twice and lost ground twice, with
Wednesday’s drop of $27.90, or 1.8%, marking gold’s biggest one-day
dollar and percentage loss for a most-active contract since November. It
finished Thursday’s session up by $6.10, or 0.4%, at $1,564.90 an ounce
Gold
may look for direction from reports due later Friday on U.S. retail
sales and producer prices in March. Also on Friday, Eric Rosengren, the
president of the Boston Federal Reserve, will speak at 8:45 a.m. Eastern
Time, at the start of the Boston Fed’s two-day economic policy
conference.
Rosengren, a voting member of the Fed’s interest-rate
setting board this year, is a strong proponent of the central bank’s
bond-buying program.
MCX June gold futures are trading at Rs 29200
per 10 grams up nearly Rs 15. The traders may sell it around current
levels with target of Rs 29155 and Rs 29090 levels.
Source by Commodity Insights
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