Gold futures are trading slightly higher in the late Asia trading action, taking support from the weak US dollar and high crude oil prices.
Gold for delivery in April rose $2 to $1,578 an ounce in Asia electronic-trading hours on the Comex division of the New York Mercantile Exchange. Yesterday, the precious metal rose $2.50, or 0.2%, to settle at $1,574.90 an ounce, in part due to a weaker dollar.
The ICE dollar index, which measures the greenback against a basket of six currencies, fell to 81.949 on Wednesday from 82.078 in late North American trading on Tuesday.
Crude-oil futures moved higher in electronic trade Wednesday, benefitting from a stock rally that helped propel benchmark U.S. crude back above $91 a barrel.
After rising 0.8% during Tuesdays New York Mercantile Exchange session, April crude tacked on another 24 cents, or 0.3%, to sit at $91.06 a barrel by Wednesday afternoon in East Asia.
However, yellow metal is expected to remain under pressure in the near term as another investment house cut it prices forecast yesterday. The Bank of America Merrill Lynch altered 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.
MCX April gold are trading flat at Rs 29593 per 10 grams. It may face a resistance near Rs 29625 levels and support near Rs 29500-450 levels.
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