Gold.........
Gold futures got hammered further in the Asia electronic session today on
strong US economic data which strengthened the US dollar and also
supported the early tapering of U.S. monetary stimulus measures.
The
U.S. dollar rose against rivals on Tuesday after a string of strong
economic data reinforced expectations the Federal Reserve will move to
slow its program of asset purchases later this year.
Several
housing reports flowed in on Tuesday. U.S. home prices rose 2.5% in
April, the biggest monthly increase ever, according to
S&P/Case-Shiller data. A home-price report by the Federal Housing
Finance Agency showed a gain, albeit more modest, of 0.7% in April
adjusted for seasonality. New-home sales rose 2.1% in May to an annual
rate of 476,000, their highest rate since mid-2008.
Additionally,
durable-goods orders increased in May for the second month in a row,
rising 3.6% to a seasonally adjusted $231 billion. Consumer confidence
in June surged to a reading of 81.4, its highest level in more than five
years.
The ICE dollar index which measures the U.S. unit against
six other major currencies, rose to 82.553 from 82.412 late Monday in
North America. The euro— which makes up more than half of the
comparative basket used for the ICE dollar index by weighting — fell to
$1.3095 from $1.3122.
Gold for August delivery slipped to as low
as $1242.6 an ounce so far in the session today. Yesterday, it ended
lower by $2 to close at $1,275.10 an ounce.
MCX Gold futures have
however been cushioned by the extra soft Rupee. The August bullion
futures may open today’s session near Rs 26200 levels with support
around Rs 26000 levels. So far in the month of June the Indian Rupee has
tumbled by more than 5% whereas the gold futures have shed just 3%.
Source by Commodity Insights
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