Friday 12 April 2013

Gold Pulls Down Further

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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