Gold futures for June delivery are trading up $14.3 at $ 1467.9 a troy ounce on the Comex division of the New York Mercantile Exchange. The metal is likely to face a resistance near $1490 levels and support near $ 1400 levels.
Despite Friday's lackluster performance, gold futures rallied 4%, on the week. Gold prices rose to the highest levels of the day after data showed that the U.S. economy grew less-than-forecast in the first quarter, underling expectations that the Federal Reserve will keep its loose monetary policy in place for the indefinite future.
The Commerce Department said U.S. gross domestic product expanded by 2.5% in the three months to March, missing expectations for growth of 3.0%.
Reports of central bank buying also benefitted sentiment. Russia, Turkey and Kazakhstan all added to their gold reserves in March, according to International Monetary Fund data released earlier in the week.
In the week ahead, gold traders will be focusing on Wednesday's Federal Reserve policy statement, for further hints regarding the future of the central bank's monetary easing program.
Investors will be also be watching Friday's U.S. data on non-farm payrolls, as they attempt to gauge the strength of the U.S. economy. Any improvement in the U.S. economy could scale back expectations for further easing from the Fed.
MCX June gold futures may continue to trade above Rs 27000 levels with resistance near Rs 27500-700 levels this week and support near Rs 25000-24400 levels.
Source by Commodity Insights
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