Gold.......
Gold futures are trading lower as the equities cheered taking the
Japanese stocks toward fresh multiyear highs on indication that the
Federal Reserve Bank wasn’t close to slowing its asset purchases.
The
rally in equity market has recently taken away the shine from gold as
investors have taken away their money from gold and other commodities
and have invested in the stock market.
U.S. stocks rose on
Tuesday, with the Dow industrials and S&P 500 finishing at record
highs, after comments from two Federal Reserve officials suggested that
the central bank is not close to tapering its bond-buying program. The
Dow Jones Industrial Average gained 52.30 points, or 0.3%, to end at
15,387.58, notching its 19th consecutive Tuesday rise. The S&P 500
index climbed 2.87 points, or 0.2%, to 1,669.16,
In Asia, the
Nikkei Stock Average, which ended at multiyear highs in each of the last
three trading sessions, climbed a further 1.1% to 15,555.82, while the
broader Topix added 0.8%.
Gold for June delivery is trading down
$2 at $ 1375 an ounce on the Comex division of the New York Mercantile
Exchange. It shed $6.50, or 0.5%, to settle at $1,377.60 an ounce,
paring losses that had taken prices to a low below $1,360.
On
Tuesday, St. Louis Fed President James Bullard said the central bank
should continue with its present bond-buying program and adjust the rate
of purchases in view of incoming data on growth and inflation. In a
separate speech, New York Fed President William Dudley said he’s not
sure which way the Fed will adjust the size of its bond-purchase
program.
The program has helped support gold as quantitative
easing tends to pressure the dollar and can lead to inflation. Gold is
often seen as a hedge against inflation.
Fed Chairman Ben Bernanke
on Wednesday will testify before the Joint Economic Committee about the
central bank’s economic outlook and the FOMC will release minutes from
its most recent policy meeting.
MCX June gold futures may open
today’s session near Rs 26100 levels with resistance near Rs 26200-300
and support near Rs 25950.
Source by Commodity Insights
No comments:
Post a Comment