Gold futures are trading with steady gains in the Asia morning session Monday cheering the news that Cyprus reached a tentative deal to unlock crucial financial aid. Gold is likely to trade in the range of $1570-$1620 levels this week.
Under the broad terms of the bailout
agreement, Cyprus will receive 10 billion euros ($13 billion) in
bailout funds for its banks, while depositors holding less than €100,000
in their accounts will be spared from any deposit taxes.Asian stocks also rallied as news that Cyprus and its international lenders reached a bailout agreement removed fears of the nation's exit from the euro zone, also helping boost U.S. equity futures, euro and crude-oil.
Japan's Nikkei Stock Average and South Korea's Kospi jumped 1.5% each, while Hong Kong's Hang Seng Index added 0.6%, and Australia's S&P/ASX 200 index climbed 0.5%. On the downside, the Shanghai Composite Index fell 0.1% in choppy trading.
Gold futures for April delivery are trading up $4.1 at $1610.2 an ounce on the Comex division of the New York Mercantile Exchange. It posted a gain of 1% on the week, the third consecutive weekly advance.
Sentiment on the precious metal remained upbeat after the Federal Reserve reiterated its commitment to its asset purchase program despite signs of a strengthening U.S. economy. The U.S. central bank announced Wednesday that it will leave its loose monetary policy unchanged, citing concerns over high unemployment levels and risks from tax increases and federal government spending cuts.
In the week ahead market participants will be looking ahead to a flurry of data from the U.S., including reports on durable goods orders, home sales and consumer confidence.
MCX April gold futures may open today's session near Rs 29700 levels with resistance near Rs 29740 levels and support near Rs 29640 levels.
Source by Commodity Insights
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