U.S. gold futures rose yesterday after trading in a narrow range, helped by investor demand for portfolio protection against inflation as well as a weaker U.S. dollar.
Revised targets of gold by major participants also added support in to the gold prices .HSBC on Thursday raised its 2009 gold price forecast to $875 from $825 an ounce as inflation concerns spur strong investment demand for gold exchange-traded funds and bullion coins and bars.
SPDR Gold Trust, the world's largest gold-backed
Exchange-traded fund saw its holdings up 1.53 tonne to 1,105.62 tonnes as of May 13, confirming market talk about ETF buying on Wednesday.
At the same time, the U.S. Labour Department said that producer prices were up 0.3% in April, but down 3.7% from a year ago. It was the biggest annual decline in 59 years. And also said that jobless claims were up 32,000 last week to 637,000, more than expected.
Weekly Outlook (DG. June.)
Gold prices bullish above $927 .Supports are $ 913, 908,894. Resistances are 940, 953, 978
Last day DGCX Gold June. Traded in the range $929-$921and closed at $ 928.10
