Gold futures are trading with mild gains as demand for gold was hurt as the investors rushed for risky asset classes taking the global equity markets up more than a percent. BOA Merrill Lynch cut the metals price forecast for next two years which further depressed the prices.
Asian stocks made strong gains Wednesday, as investors picked up on the advance on Wall Street � where the Dow industrials hit an all-time high � to push stocks higher from Tokyo to Hong Kong.
The Dow Jones Industrial Average leapt to a new high on Tuesday, surpassing levels reached more than five years ago, on indications of an improving U.S. economy. Up 8.8% for the year so far, the more than century-old blue-chip index posted its first finish above the record closing high of 14,164.53 set on Oct. 9, 2007, ahead of the global financial meltdown.
Adding to a near-2% gain made so far this week on optimism for another round of policy loosening to lift the Japanese economy out of deflation, the Nikkei Stock Average climbed 1.2% in Tokyo to trade at its highest level in nearly five years. The Hang Seng Index rose 0.9%, while the Shanghai Composite Index climbed 0.3% on the Chinese mainland.
Meanwhile, the Bank of America Merrill Lynch, meanwhile, became the latest investment house to alter its outlook on gold prices, saying it doesnt expect gold to break above $2,000 until 2014. The bank also cut its prices for this year and next. The analysts cut their 2013 average price forecast for gold by nearly 7% to $1,680 a troy ounce and its 2014 forecast by nearly 10% to $1,838 an ounce. Those analysts had previously expected gold to reach $2,000 an ounce in the second quarter of 2013.
Gold for delivery in April is trading up $3.1 at $ 1577.8 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it rose $2.50, or 0.2%, to settle at $1,574.90 an ounce. It traded as high as $1,585.80 and as low as $1,571.10.
MCX April gold may open todays session near Rs 29600 levels with resistance near Rs 29700 and support near Rs 29500 levels. Yesterday, it ended lower by 0.3% at Rs 29569 per 10 grams.
Source by Commodity Insights
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