Gold futures inched up in the Asia electronic session today, extending its recent rally towards $1600 an ounce. However gold was unable to breach the pschological $1600 an ounce mark.
The most actively traded contract, for April delivery is trading up 0.5 cents at $ 1592.2 per ounce on the Comex division of the New York Mercantile Exchange. It settled up $13.70, or 0.9%, at $1,591.70 a troy ounce yesterday. The contract touched an intraday high of $1,597.60 a troy ounce.
Golds gains came as weaker-than-expected U.K. industrial production data reiterated that world economies continue to need support from loose monetary policies. Low interest rates and a cash-flush financial system tend to benefit gold prices, as investors looking to preserve wealth stock up on hard assets such as gold.
Gold also benefited from weakness in equity markets, which had been on a record-breaking runup that drew some investors away from gold in recent weeks. Gold is widely considered a safe haven, and demand for it tends to weaken when riskier assets like equities are rallying.
This week, gold traders will be closely watching U.S. data on retail sales, industrial production and inflation to determine the strength of the economic recovery. Any improvement in the U.S. economy could scale back expectations for further easing by the Fed, boosting the U.S. dollar and weighing on dollar-denominated commodities.
MCX April gold futures may open today’s session near Rs 29440 levels with resistance near Rs 29470-90 levels.
Source by Commodity Insights
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