Gold continued to stay below $1600 an ounce in Asia today with the low volumes dictating the movement in the financial markets as investors enjoy their holidays. Gold has been tumbling since hitting the life time high of above $ 1900 and has been persistently falling below $1600 an ounce serially.
Some more beating in the metal may be seen early in 2012 before it once again starts it journey upward. An ounce of gold on the COMEX division of New York Mercantile Exchange is trading down $8 at $ 1599. 2011 was a quite volatile one for the commodity trading in the wide range of $1911- 1300 levels. Most of this year gold has been following the equity markets and crude oil and we saw a perfect breakup between gold and dollar relationship this year.
The decline came amid a day a thin trading volume, with many markets closed for holidays. Asian markets extend their fall in thin volumes, with South Korean stocks briefly sliding more than 2% in choppy trade before recovering some ground.
Crude-oil futures nudged higher in East Asian trading hours Tuesday. Crude oil for February delivery rose to $99.78 a barrel in electronic trading on the New York Mercantile Exchange, up from $99.68 a day earlier.
Domestic gold futures started today's session below Rs. 27600 and is now seen trading at Rs. 27630 down by nearly Rs. 150 per 10 grams. The counter is expected to face resistance near Rs. 27700 and Rs. 27800 levels today.
