The week gone by, Gold’s uptrend remained in place, with people being fidgety about Europe’s debt crisis. Spot gold settled by gaining 1.6% and the same has been observed in the futures in the Comex and Mcx division.
The dollar index settled the week by losing 0.90% on the back of which gold made its rally.
Greek Prime minister said he will press ahead with new austerity measures even as he failed to win backing from opposition parties.
World equities measured by the MSCI all country world indexes, rose nearly 0.15% while the Asian benchmark index fell 0.20%. On the other hand, the CRB Index, a bellwether for commodities, was up by 1.38% for a third week of gains after a plunge in precious metals in early May.
Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded slid slightly to 1213.16 tons from 1214.07 tons as on 28th May.
The gold-silver ratio stood at 40.60, slid from the last week’s 43.44 as silver outweighs gold.
Outlook:
The US market is closed today for a Memorial Day holiday which normally means subdued trade. Gold is seen quoting $1536.80, down by 0.01% from the prior closing in the electronic session.
The dollar index is showing strength which is at present is up by 0.18%. Asian stocks are swinging between gains losses after reports showed that the US home sales plunged more than the forecast.
The Euro is weakening against the dollar amid peripheral European debt problems as the EU may withhold the next tranche of credit to Greece after a report by an international panel of inspectors concluded that the debt laden country has missed all the fiscal targets agreed in its rescue plan.
The British Chamber of Commerce pushes back BOE rate increase forecast after cutting its growth outlook, may be another factors to make the Euro weak. Weakness in the US economic data is starting to stand out and concern on downward pressure of dollar will impact earnings of the exporters.
Overall, with absence of any economic releases and a subdued trade, gold is likely to remain under pressure in Indian platform on the back of appreciated rupee. Hence it is recommended to be long at a lower price as the weekly trend is bullish.
Courtesy: Karvy Commtrade Ltd.
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