Gold futures traded steady above $1610 in the Asia electronic session today close to a three-week high as Cyprus's rejection of bailout terms triggered worries about a default and underpinned safe haven demand in gold.
Cyprus's parliament overwhelmingly rejected a proposed levy
on bank deposits as a condition for a European bailout on Tuesday,
throwing international efforts to rescue the latest casualty of the euro
zone debt crisis into disarray. The threat of a default or even
expulsion of Cyprus from the euro zone drove nervous investors to seek
refuge in gold. Upbeat U.S. economic data in recent months has encouraged investors to pile money into the stock market, helping the S&P 500 index climb more than 8% so far this year. Gold, in comparison, is down nearly 4% since Dec. 31.
Investors will be closely watching the outcome of the Federal Reserve's two-day meeting on Wednesday, as well as a press conference by Fed Chairman Ben Bernanke. Any hint of tightening monetary policy would add to headwind that gold faced recently.
April gold futures are trading up 0.4 at $ 1611.7 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it surged $6.70, or 0.4%, to settle at $1,611.30 an ounce. Prices for the metal on Monday finished above $1,600 an ounce for the first time in March, up $12.
MCX April bullion may open today’s session near Rs 29800 levels with resistance near Rs 29870 levels and support near Rs 29740 levels.
Source by Commodity Insights
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