Spot Gold settled 0.36% higher from the previous closing at $1433.95 as rising oil price concern crippled in to accelerating inflation, supported demand for the metal as an alternative investment.
The same has been observed in futures in the COMEX although in MCX division the future lost a mere 0.01%.
The Dollar Index gained 0.09% to settle at 75.910. The UK PMI construction data came better than expected kept the business confidence in construction sector intact.
Global equities closed mostly in positive. Asian equities advanced marginally higher than the DJIA and FTSE. Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund remained unchanged at 1211.22 tons as on 4th April.
The Gold Silver Ratio plunged to its lowest of 37.23 as the white metal outperformed the yellow metal.
Outlook:
Currently at Globex platform gold is seen trading at $1436.80up by $3.80 from its prior closing and the Dollar Index is showing bit strength over the majors at 76.041(+0.19%). The Asian equities are trading in a mix.
The US and NATO warplanes continued to destroy regime targets in Libya as Qadaffi’s diplomatic outreach failed to persuade European leaders. This may again boost haven demand for the metal.
Fed Chairman Bernanke’s expectation for a transitory boost in inflation due to rising commodities prices may induce central bank to act accordingly, should fuel up the hedge demand as well.
Coming to the economic data front, PMI data from the Euro zone, Germany and UK are likely to be consistent which may give a little pool back.
Overall, the economic unrest is still dwindling and a rising concern for inflation may lift the precious metals price up for the day and hence is recommended to be on the long side for the metal.
