Monday, 29 July 2013
Gold Slips As Dollar Moves Up Ahead Of Fed
Gold futures are trading lower in the Asia electronic session today as the US dollar moved up from its one-month low against the Japanese yen, as the Federal Reserve prepared to start a two-day monetary-policy meeting.
The ICE dollar index, a gauge of the greenback’s movement against six other major currencies, rose to 81.711, up from 81.663 late Monday in North America. The euro bought $1.3260, little changed from $1.3263, while the British pound fell to $1.5339 from $1.5349.
The ICE dollar index had lost more than 3% since hitting its most recent high on June 9. The pullback was spurred by speculation about when the Fed will begin tapering its bond purchases and by subsequent comments from Fed Chairman Ben Bernanke about interest rates staying low for an extended period.
An ounce of gold on the COMEX division of the New York Mercantile Exchange is trading down $1.3 at $ 1328.3. Yesterday, it rose $7.70, or 0.6%, to settle at $1,329.60 an ounce. The FOMC begins its two-day meeting on Tuesday, with its decision on monetary policy due Wednesday.
September silver futures are trading down 0.049 at $ 19.81 per ounce on Comex. Yesterday, it ended higher by 9 cents, or 0.5%, to $19.86 an ounce.
A packed week of updates for the market includes the first reading of second-quarter gross domestic product in the U.S., manufacturing data from major gold consumer China, and monetary-policy decisions from the European Central Bank and Bank of England.
MCX new benchmark October contract may open today’s session near Rs 27850 levels with support around Rs 27740 levels.
Source by Commodity Insights