New York gold futures fluctuated, though in a narrow range, on account of prevailing sovereign issues in Europe and a string of economic data releases, mainly from the U.S.
The metal settled lower on improved U.S. economic outlook, suggested by falling weekly jobless claims data and rising personal income and spending.
The yellow metal mostly traded in negative territories and closed down as the dollar coming off its early lows curbed the alternative investment demand of gold.
However, there were some occasional dips noticed in the dollar as some economic data such as; durable goods orders, house price index and new home sales came negative.
Key Observations
Gold futures for December-delivery closed 0.33% down at $1373/oz. The dollar was moving back and forth amid ongoing issues such as European debt crisis and tensions in Korean nations.
In addition, a host of economic data gave investors further chance to speculate on the data releases. The dollar index moved in the range of 79.386–79.995 and settled tad higher at 79.695 levels. U.S. stocks rallied after having incurred losses in the last two penultimate days, after data releases gave some respite to markets ahead of Thanksgiving holiday on Thursday.
The benchmark MSCI World Index for stocks closed up by 0.93%. Total exchange-trade gold holdings declined further by 1.98 MT to 1601.68 MT, but SPDR gold holdings remained same at 1285.08 MT. MCX gold futures for December-delivery closed 0.56% lower at `20398/10 gm yesterday.
Outlook
COMEX gold futures are trading lower at $1370/oz on electronic platform in Asian hours while the dollar index is staying upbeat after yesterday’s positive data releases. Asian equities are trading higher on signs of strengthening U.S. economic recovery.
U.S. markets shall remain closed today on account of “Thanksgiving” holiday. Markets may witness lackluster trading as there are no major economic data scheduled today.
Many investors may unwind their positions ahead of the starting of holiday-shopping season. Korean tensions also ease which brings down gold’s safety status. Markets will really be lacking major triggers to bet upon. We are expecting thin trading with some downside expected in gold.
