Gold Weekly Analytics For Mcx .modity Market-soojin

Investing Gold witnessed mixed trade but ended the week with a 1% slide erasing some of the gains noted a week ago. Gold traded in a narrow range of $28.4/oz last week ($1659.6-1631.2/oz) the narrowest range seen since June 2011. Rangebound movement on international exchange kept price in a narrow range on domestic market as well however weaker rupee lent some support. MCX Gold ended the week with a 0.4% gain and traded in a range of Rs.28780-28351/10 gram. Indian rupee fell 1% against the US dollar lending support to domestic price. Gold started the week on a weaker note as .modities in general came under pressure amid concerns about health of US, Euro-zone and Chinese economy following recent events. The euro also hit a 2-month low amid increasing tensions about health of Spanish economy. The metal however recovered after .modities and euro stabilized as Spanish bond auction met robust demand. Gold however failed to breach the $1660/oz level and came under pressure to hit a low of $1631.2/oz level. Choppiness in euro against the US dollar and .modities weighed on gold prices . The metal however traded in a narrow range of $9.6/oz on Friday despite sharp rise in Euro against the US dollar and .modities in general. Gold updates has witnessed mixed trade in last few weeks but remains bound in a range of $1600-$1700/oz amid lack of fresh direction. The conundrum of being a safe haven asset or a .modity in general has also tempered any sharp gains or losses. Loose monetary policy in US and other advanced nations, euro-zone debt problems and robust demand in China and India have been major factor for gold however the metal is awaiting fresh direction. There is uncertainty about Feds monetary policy stance and gold has reacted sharply to .ments from Fed officials and key economic readings. Fed in last few weeks has noted improvement the economy reducing hopes of additional monetary easing in US. However economic readings have been mixed keeping hopes alive that more steps will be considered. The US central bank will not take additional measures unless economic outlook worsens significantly. However the central bank will continue with record low interest rate until late 2014 which will result in negative real interest rate, a supportive factor for gold. Concerns about Euro-zone economies resurfaced in last few days as regional bond yields rose amid waning impact of ECBs 3-year lending operation. However bond auctions last week saw robust demand. Also ECB stands ready to take more measures to support the economy. IMFs success to broaden its war chest also indicates that more funds could be used to support European nations. Debt problems and slow growth due to austerity measures in euro-zone is negative for .modities at large and supportive for the US dollar. However continuing concerns could increase golds demand as a safe haven asset. Also weighing on gold price is uncertainty about demand from China and Indian. Chinese economy is showing signs of slowdown and this has raised concerns about demand for .modities in general. On Indian front, higher price due to weaker Indian rupee and sharp rise in import duty has also dented market sentiments. Gold has moved in sync with .modities and equities market for last few months and we expect this positive correlation to persist in the near term. Gold continues to remain in a broad range as market players try to gauge Feds monetary policy stance. In the near term, trend in US dollar will be continue to be key price determining factor for gold and focus will be on US and Euro-zone economy. For US, focus will be on economic data and .ments from Fed officials. For Euro, focus will be on economic data, bond yields and ECBs bond buying. Also get daily news about silver updates , free mcx tips with a excellent way .. About the Author: 相关的主题文章:

« »

Comments closed.