Gold futures bent down today, however the losses were limited due to weakness in the Asia markets and US dollar also displayed some fragility today. Also the Fed’s announcement that it will leave its loose monetary policy in place should support the metal.
Gold for
delivery in April fell $1.8 to $1,612 an ounce in Asia trading hours on
the Comex division of the New York Mercantile Exchange. Yesterday, the
precious metal added $6.30, or 0.4%, to settle at $1,613.80 an ounce,
boosted by a drop for U.S. stocks and concerns over the financial crisis
in Cyprus.However, safe-haven buying looked to be taking a breather Friday. The ICE dollar index , which measures the greenback against a basket of six rival currencies, fell to 82.748, down from 82.833 late Thursday.
Japanese stocks tumbled Friday as the yen firmed up a day after the new Bank of Japan governor offered few new details on future policy, while Hong Kong shares fell after weak results from PetroChina Co.
Many Asia markets suffered from heightened worries over Cyprus after the European Central Bank (ECB) issued a deadline to its parliament for meeting the terms of a proposed bailout, an issue which also hurt stocks on Wall Street overnight.
Meanwhile, the Fed announced Wednesday that it will leave its loose monetary policy in place, citing concerns over high unemployment levels and risks from tax increases and federal government spending cuts.
Fed officials reaffirmed their commitment to keeping short-term interest rates at record low levels at least until unemployment falls to 6.5%. The current unemployment rate is 7.7%. Elsewhere, the European Central Bank announced that it will continue to supply emergency funding to Cyprus's banks until next Monday.
MCX April gold futures are trading down nearly Rs 70 at Rs 29764 per 10 grams. The counter may find support near Rs 29700-650 levels with resistance near Rs 29830 levels.
Source by Commodity Insights
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