Gold
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Gold futures jumped in the Asia electronic session today as the dull equity
markets attracted investors towards the yellow metal.
Asian
stocks fell Wednesday after U.S. equities lost ground overnight amid
concerns the Federal Reserve may taper its bond purchases, while
Japanese shares seesawed as investors awaited a key policy speech from
Prime Minister Shinzo Abe.
Australia’s S&P/ASX 200 fell 1.2%,
extending losses after data showed the domestic economy expanded at a
slower-than-expected rate during the January-March quarter. Elsewhere,
the Shanghai Composite eased 0.1%, Hong Kong’s Hang Seng Index fell
0.7%, and South Korea’s Kospi gave up 0.6%.
In Japan, the Nikkei
Stock Average and the broader Topix index slipped 0.1% each ahead of
Abe’s widely anticipated outline of his economic growth strategy, due
later in the day. The Japanese benchmarks swung between gains and
losses, changing direction several times.
Gold for August delivery
is trading up $9 at $ 1406 per ounce on the Comex division of the New
York Mercantile Exchange. It dropped $14.70, or 1%, to settle at
$1,397.20 an ounce yesterday.
The move came a day after gold
prices tacked on $18.90 an ounce, or 1.4%, to close at $1,411.90, helped
by a decline in the dollar on data showing a contraction in U.S.
manufacturing in May. Prices for the August gold contract had lost $19
on Friday.
On Tuesday, U.S. equities moved lower in afternoon
trading as Fed worries weighed. Separate data showing the fastest
home-price growth in more than seven years and the U.S. trade gap
widening less than expected took a back burner.
The markets will
further assess the Fed’s bond buying — aimed at stimulating economic
growth — when the widely watched U.S. employment report for May is
released on Friday. An employment report from ADP comes out on
Wednesday.
MCX August gold futures may open today’s session near Rs 27250 levels with resistance near Rs 27350 levels.
Source by Commodity Insights
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