Spot Gold climbed to a record $1509 to settle at $1506.25, 0.25% higher than the prior closing. The immediate delivery gold futures although traded firm above $1500 to close at $1503.80 by gaining 0.33%. In the MCX also it has made record high of Rs.22138 to settle at Rs.22120 on Saturday.
The US debt concern weighted on the dollar which led benchmark index fell 0.87% yesterday and boosted the demand for gold.
The dollar slid to the lowest level since August 2008 against the majors on speculation that the US will be slow to raise borrowing cost. The Euro appreciated against the dollar on anticipation of probable interest rate hike as some nations are victimized of debt.
Last week global equities performed ecstatic. Most of the Asian equities, Europe and US has gained modestly.
Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded slid a bit to 1229.64 tons from 1230.24 tons as on 21st Apr.
The gold-silver ratio has plunged to its lowest of 32.64 as silver is continuously outperforming the gold.
Outlook:
Currently at Globex platform gold is seen trading at $1512 up by $8.20 from its prior closing and the Dollar Index is showing bit strength by 0.13%. The Asian equities at the moment are trading mostly in positive.
Violence in the Middle East has again escalated after Syrian security forces detained 200 protestors and there is no sign of ending of the unrest.
Gold may climb up on the back of aggravating geo political unrest, well supported by soaring crude. Coming to the economic data front, the US new home sales are likely to take a leap while the Dallas Fed Manufacturing activity is also expected to increase which might put a little pressure on the price rise of the metal. The PGM as a group is also supporting the momentum gain.
Hence it is recommended to be on the long side for the metal with due consideration of reaping price benefit.
