Gold update

Gold has jumped in Asian trades today as equities soared and Euro tumbled to its lowest level in nearly one year. The metal had dropped in New York floor trades on Friday, testing lows near $1650 per ounce but has flipped back thereafter. The stocks in Shanghai and Hong Kong are leading the charge in Asia and all commodities are in a positive mood. The COMEX Gold futures are trading at $1666.30, up $5.70 per ounce on the day after testing a high of $1667.90 earlier in the session. 

Gold continued to encounter heavy resistances in last few days, plummeting to a four month low on worries over demand from emerging nations and fears that the Fed would be on the lookout to pause its relentless quantitative easing. The metal has started the year on a bright note, hitting near a two week high of $1700 per ounce level but failed to break the watershed mark and was sold on rallies thereafter as investors grew worried about the metal getting back to its winning ways in near term. 

The Indian demand is expected to remain lax in near term as the festive season is over and a weak rupee is ensuring that the prices are hovering around Rs 31000 per 10 gram mark in spot markets- up about 11% over the year. India's Minister P Chidambaram noted that the country's record current account deficit is worrying indicated that the government has no choice but to try and curb gold imports to correct the heavy deficit. Recent data shows that current account deficit surged to 5.4% of gross domestic product (GDP) in the September quarter, driven by falling exports. The gap, the widest in absolute terms since 1949, has weakened the rupee currency and exposed the economy to costlier imports.

Meanwhile, the minutes from December policy meeting of US FOMC showed that several top officials expected to slow or stop the so-called quantitative easing program, dubbed QE3, well before the end of the year. This hurt gold quite severely as ultra easy money has been one of the primary factor boosting the Gold prices over last couple of years. The COMEX Gold futures have been constantly facing selling pressure after topping out at a high of $1800 in October last year. 

Euro has surged to a high of 1.3340 against the US dollar today, propping Gold and other commodities higher. Crude and copper are also trading with smart gains. MCX Gold futures for February are trading at Rs 30799, up just Rs 9 per 10 grams on the day as a strong Indian Rupee capped the upside. The INR is up by nearly 10 paise against the US dollar in opening moves.

Gold Updates

Gold futures tumbled in tandem with the losses in equity markets on Monday morning on concerns of surprise contraction in the U.S. manufacturing activity and investor fear of the fiscal cliff grows.

Asia’s major stock markets lost ground Tuesday following lower finish Monday on Wall Street, where stocks were pressured after a measure of U.S. factory activity unexpectedly contracted in November and as uncertainty lingered over the fiscal cliff of automatic tax hikes and spending cuts.

Japan’s Nikkei Stock Average fell 0.4%, South Korea’s Kospi lost 0.5%, and Australia’s S&P/ASX 200 index traded down 0.2%. In China, Hong Kong’s Hang Seng Index traded fractionally lower, while the Shanghai Composite Index lost another 0.2% to hit a fresh four-year low.

On the economic front today, Australia's central bank cut its key cash rate by a quarter of a percentage point to 3%. Reserve Bank of Australia Gov. Glenn Stevens said in a statement alongside the decision that "the board judged at today's meeting that a further easing in the stance of monetary policy was appropriate now. This will help to foster sustainable growth in demand and inflation outcomes consistent with the target over time."

Australia's current-account deficit widened to 14.9 billion Australian dollars ($15.5 billion) in the three months to Sept. 30, the Australian Bureau of Statistics reported Tuesday. In the three months to the end of June, the deficit stood at A$12.4 billion on an adjusted basis.

COMEX February gold futures are trading down $6.1 at $1715 an ounce in Asia electronic trades today. Yesterday, it rose $8.40, or 0.5%, to settle at $1,721.10 an ounce on the Comex division of the New York Mercantile Exchange.

In economic news Monday, business among U.S. manufacturers contracted in November and activity fell to the lowest level since July 2009, according to the closely followed ISM index. The Institute for Supply Management’s index fell to 49.5% from 51.7% in October. U.S. construction spending, however, jumped 1.4% in October, well above analysts’ expectations for a 0.5% gain.

MCX February gold futures may open today’s session near Rs 31650 levels with support around Rs 31570 levels.

Gold Updates

Bullion metals ended substantially lower at Comex on Wednesday, 28 November 2012. Gold prices ended lower for third straight day as the dollar headed up. Just after the Comex gold futures market opened, heavy sell orders flooded in and prices quickly extend earlier losses and hit the daily low. There was no major news event, which occurred during to explain the sudden downdraft in prices. Silver futures followed gold's lead and sold off sharply. But, silver by the close Wednesday did post a good recovery from its daily low.
Gold for December delivery fell $25.8 (1.5%) to settle at $1,716.5 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday.
On Wednesday, December silver fell 30 cents, or 0.9%, to settle at $33.77 an ounce.
Traders and investors are more keenly focused on the negotiations among U.S. lawmakers and President Obama regarding the so-called “fiscal cliff” tax increases and spending cuts that are approaching. European and Asian stock markets, and the Euro currency were weaker overnight on the fiscal cliff worries. There is still a sense among many veteran politicos and market watchers that some type of deal will be reached soon to avoid the U.S. government going over the fiscal cliff.
The dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.25% on Wednesday.
In today's economic news at Wall Street, housing data pointed to a 0.3% decrease in October new home sales. The annualized rate of 368,000 fell short of expectations.
The Federal Reserve released its October Beige Book, which pointed to modest growth in seven Districts. Meanwhile, two Districts reported stronger growth while Boston, New York, and Philadelphia saw weak performance. The weakness in New York and Philadelphia was attributed to disruptions caused by Superstorm Sandy. Further, contacts in several regions expressed concerns over the uncertainty surrounding the ongoing budget debate.
At the MCX, gold prices for February delivery closed lower by Rs 328 (1%) at Rs 32,266 per ten grams. Prices rose to a high of Rs 32,640 per 10 grams and fell to a low of Rs 32,140 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed lower by Rs 404 (0.61%) at Rs 65,131/Kg. Prices opened at Rs 65,421/kg and fell to a low of Rs 63,976/Kg during the day's trading.

Gold Updates

Bullion metals ended lower at Comex on Tuesday, 27 November 2012. Gold prices ended lower for second straight day as the dollar headed up and a sort of debt deal was reached at Greece. Upbeat US data also took some shine away.

Gold for December delivery fell $7.3 (0.4%) to settle at $1,742.3 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.

On Tuesday, December silver fell 16 cents, or 0.5%, to settle at $33.98 an ounce.

In overnight trading, the European stock markets rallied only modestly on news that Euro zone leaders meeting in Brussels agreed late Monday to disburse fresh bailout funds to cash-starved Greece. Most market watchers had reckoned EU leaders would grant new monies to Greece. The world market place showed no significant reaction to the as-expected news on Greece.

A meeting to discuss Greece's finances wrapped up early Tuesday with Greece's institutional lenders reaching a deal to pave the way for Athens to receive almost 44 billion euros (almost $57 billion) of financial aid, while bringing its debt down to a sustainable level. The deal is expected to trigger another aid payment for the debt-struck country.

A heavy slate of U.S. economic data released Tuesday did show generally better-than-expected readings overall, and that put modest upside pressure on the U.S. dollar index, which in turn helped push gold and silver prices to their daily lows.

The dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.2% on Tuesday. The Euro currency also was initially supported on the Greece news but could not hold those gains as the day wore on.

In today's economic news at Wall Street, Consumer confidence rose in November to its best reading in more than four years. The latest consumer confidence reading for November came in at 73.7, while market expected a reading of 73.0. The Conference Board said its consumer confidence index rose to 73.7 in November from 73.1 in October. That's above the 72.2 level forecast. The October reading was upwardly revised from 72.2.

Separately, the September Housing Price Index from the FHFA increased by 1.1%, which follows a 0.7% increase observed during the prior month. Also, the September Case-Shiller 20-city Home Price Index rose by 3.0%, while a 3.1% increase had been expected. This followed the previous month's increase of 2.0%.

Durable goods orders were unchanged in October, which was better than the 0.4% decrease that had been expected. Excluding transportation related items, durable goods orders increased in October by 1.5%, which was better than the 0.4% decrease that had been broadly anticipated. Prior month's reading was revised down to reflect an increase of 1.7%.

Traders and investors are also focused on the negotiations among U.S. lawmakers and President Obama regarding the so-called “fiscal cliff” tax increases and spending cuts that are approaching.

At the MCX, gold prices for February delivery closed lower by Rs 149 (0.45%) at Rs 32,594 per ten grams. Prices rose to a high of Rs 32,825 per 10 grams and fell to a low of Rs 32,550 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed lower by Rs 198 (0.31%) at Rs 63,536/Kg. Prices opened at Rs 63,877/kg and fell to a low of Rs 63,361/Kg during the day's trading.

Gold Updates

Gold after a sharp rally in the preceding two trading sessions cooled-off a wee bit owing to profit taking at higher levels.

However, going ahead the bias is likely to remain positive as long as Gold sustains above the short-term 20-day DMA - which is currently at Rs 31,000. On the upside, Gold can rally to Rs 31,450-odd levels.

For today, the Gold MCX December futures may face resistance around Rs 31,365-31,415-31,470. On the downside, Gold MCX may seek support around Rs 31,045-30,995-30,945.

The corresponding key levels for Gold Mini December futures are as follows - support at Rs 31,060-31,000-30,950, while face resistance around Rs 31,375-31,425-31,475.

Gold Updates

Gold came back in action today after the commodity had silent session for past two days as the hurricane Sandy thinned the trading in markets. However the metal may face resistances near $1735 levels as traders become cautious ahead of the US employment data due on Friday and the presidential election next week.

The metal surged above $1720 an ounce after data released showed that China's economy is finally regaining traction, although the recovery remains sluggish. China's manufacturing activity rose to an eight-month high in October, firming to a level marginally below expansion, according to survey released by HSBC on Thursday. The China Purchasing Managers' Index rose to 49.5 on a 100-point scale, showing improvement from HSBC's final PMI reading of 47.9 in September.

US December gold futures are trading gold futures are up $3 at $ 1722.1 per ounce on the Comex division of the New York Mercantile Exchange. Gold had climbed to near $1,800 an ounce in early October after aggressive stimulus measures announced by central banks including the US Federal Reserve and European Central Bank fuelled a rally.

In other metals, December silver futures were up 6 cents at $32.38 an ounce while December copper futures rose 2 cents to $3.53 per pound. Platinum for December delivery declined $2.70 to $1,574.30, while January palladium futures slipped $1.15 to $608.65 an ounce.

MCX December gold futures are trading flat at Rs 31110 per 10 grams today. It may face a stiff resistance near Rs 31150 levels.

COMEX Gold Updates

Gold futures are trading flat in Asia electronic trades today post the damaging hurricane Sandy which left more than 35 dead, millions without power, and cities and towns flooded.

Sandy’s storm surge neared 14 feet, driving water into the still-open construction pit at the World Trade Center and flooding parts of the New York subway system. President Barack Obama declared a major disaster in New York and Long Island.

Asian shares advanced on Wednesday, with investors eyeing local earnings results and the impact from super storm Sandy in the U.S. Japan’s Nikkei Stock Average advanced 1% after losing 1% in the previous session. South Korea’s Kospi rose 0.7%, and Australia’s S&P/ASX 200 index also gained 0.7%. In China, Hong Kong’s Hang Seng Index climbed 0.6%, but the Shanghai Composite Index slipped 0.2%.

U.S. markets remained closed Tuesday for the second day after storm system Sandy brought widespread flooding and power outages to New York City, among other places.

Yesterday, Bank of Japan announced near the close of trading that it would expand its asset-buying program by ¥11 trillion to a total of ¥91 trillion. But the Bank of Japan also introduced a new lending facility to stimulate bank loans and issued an unprecedented joint statement with the Finance Ministry, highlighting its commitment to fighting deflation.

COMEX December gold futures are trading up 2 cents at $ 1712.3 per ounce in Asia electronic trades today. Yesterday, it advanced $3.40, or 0.2%, to settle $1,712.10 an ounce.

Floor trading remained closed Tuesday on the New York Mercantile Exchange after Hurricane Sandy triggered an evacuation order Monday. Metals futures prices settled at their usual times.

MCX December gold futures may open today’s session near Rs 31090 levels with resistance near Rs 31140 levels.