Gold futures posted marginal gains as the metal’s safe haven demand overshadowed rising dollar. Weak jobless data yesterday made investors think about the shape of the economy.
Comex gold futures for June delivery inched up 0.06 percent to close at $1,160.30/oz.
The dollar index rose for first time in the last five trading sessions and closed 0.3i percent higher. The dollar index pared down its intra-day gains as yesterday’s round of macroeconomic reports in the US came in largely negative.
Stock markets were slightly up as the benchmark MSCI world index for stocks closed 0.19 percent up. Crude oil prices dropped 0.38 percent to $85.51/barrel.
SPDR Gold Trust maintained its holdings at 1141.04 MT.
MCX gold futures fluctuated between Rs. 16,756 – Rs. 16,864/10 gm before closing 0.25 percent higher at Rs. 16,838/10 gm.
Outlook
Gold declined in early Asian hours as stronger dollar is sapping bullion alternative appeal. Gold for June delivery on Comex has weakened to $1,155/oz because of dollar’s strength and white metals (platinum group metals) are also down.
Asian stock markets are trading lower after China announced new measures to cool its real estate sector. Yesterday, US jobless claims data also rose which are leading Asian majors to trade down.
Gold could pick up its momentum later in the day when Euro-zone releases its CPI and trade balance reports. Both data are likely to come in positive for the economy. US will also release its housing reports; housing starts and building permits. Both the indicators may show an addition from their prior numbers.
Michigan confidence index may also improve. Overall, data expectations are positive for the dollar which is keeping the dollar index higher during Asian hours. KCTL expects gold to gain momentum during European hours after lower trading in Asian hours. We suggest buying at lower levels for the day.
However, actual data will render further direction. MCX gold future may open flat as an effect of lower international bullion prices may be offset by depreciating rupee.
