Gold.......
Gold futures jumped past $1300 an ounce in the Asia electronic
session today buoyed by losses in the US dollar. Gold continued to get
boost from the comments by Federal Reserve Chairman Ben Bernanke earlier
last week which eased concerns over the possibility the central bank
will begin to taper its bond-buying program in the near future.
August dated gold futures contract is trading up $22 at $1315.4 an ounce on the Comex division of the New York Mercantile Exchange. On the week, gold prices advanced 0.85%, the second consecutive weekly gain. It may find support near $1255 levels and resistance near $1350-70 levels.
The U.S. dollar pulled lower against the yen on Monday following an election victory seen as empowering Japan’s prime minister to move forward with economic reforms in the world’s third-largest economy.
The dollar traded at ¥100.15, down from ¥100.60 on Friday but off an intraday low of ¥99.50. The ICE dollar index, which measures the greenback against six other major currencies including the yen, fell to 82.474 from 82.633 late Friday in North America.
In the first day of his semi-annual testimony to Congress, Bernanke reiterated that the Fed will continue to maintain its accommodative monetary policy for the foreseeable future. He added that the central bank may taper its USD85-billion-a-month asset-purchase program later this year and halt it around mid-2014.
Bernanke said the pace of purchases could be maintained longer if conditions are less favorable. The precious metal is on track to post a loss of 23% on the year amid concerns the Fed will start to unwind its stimulus program by the year's end.
Recently, Silver futures have been unable to pick up hit by the demand concerns. On Friday, Comex silver for September delivery eased up 0.4% to settle the week at $19.46 a troy ounce. Despite Friday’s modest gains, silver future prices lost 2.15% on the week.
Meanwhile, copper for September delivery rose 0.5% on Friday to close the week at $3.146 a pound. The red metal found support on Friday after China’s central bank said it was removing the lower limit on interest rates for banks, to help banks attract more borrowers. China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
MCX August gold may open today’s session near Rs 26770 levels with resistance near Rs 26840-900 levels.
In the week ahead, the U.S. is to publish data on the housing sector and manufacturing to further gauge the strength of the U.S. economy. Any improvement in U.S. economic activity could scale back expectations for further easing, boosting the dollar and weighing on gold.
Source by Commodity Insights
August dated gold futures contract is trading up $22 at $1315.4 an ounce on the Comex division of the New York Mercantile Exchange. On the week, gold prices advanced 0.85%, the second consecutive weekly gain. It may find support near $1255 levels and resistance near $1350-70 levels.
The U.S. dollar pulled lower against the yen on Monday following an election victory seen as empowering Japan’s prime minister to move forward with economic reforms in the world’s third-largest economy.
The dollar traded at ¥100.15, down from ¥100.60 on Friday but off an intraday low of ¥99.50. The ICE dollar index, which measures the greenback against six other major currencies including the yen, fell to 82.474 from 82.633 late Friday in North America.
In the first day of his semi-annual testimony to Congress, Bernanke reiterated that the Fed will continue to maintain its accommodative monetary policy for the foreseeable future. He added that the central bank may taper its USD85-billion-a-month asset-purchase program later this year and halt it around mid-2014.
Bernanke said the pace of purchases could be maintained longer if conditions are less favorable. The precious metal is on track to post a loss of 23% on the year amid concerns the Fed will start to unwind its stimulus program by the year's end.
Recently, Silver futures have been unable to pick up hit by the demand concerns. On Friday, Comex silver for September delivery eased up 0.4% to settle the week at $19.46 a troy ounce. Despite Friday’s modest gains, silver future prices lost 2.15% on the week.
Meanwhile, copper for September delivery rose 0.5% on Friday to close the week at $3.146 a pound. The red metal found support on Friday after China’s central bank said it was removing the lower limit on interest rates for banks, to help banks attract more borrowers. China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
MCX August gold may open today’s session near Rs 26770 levels with resistance near Rs 26840-900 levels.
In the week ahead, the U.S. is to publish data on the housing sector and manufacturing to further gauge the strength of the U.S. economy. Any improvement in U.S. economic activity could scale back expectations for further easing, boosting the dollar and weighing on gold.
Source by Commodity Insights
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