MCX Gold futures
Yesterday, US Treasury stated that it expects to pay off debt in the current quarter for the first time in six years. In a statement, Treasury said it now expects to pay off $35 billion of debt in the April-to-June quarter, compared to an earlier projection, given in February, that it would have to borrow $103 billion. This will be the first quarter that Treasury has paid off debt since April-to-June period 2007.
US stocks jumped yesterday with the DOW adding more than 100 points. US pending sales of homes edged up by 1.5% in March, reversing February's decline, the National Association of Realtors reported yesterday. The pending-home-sales index increased to 105.7 in March from 104.1 in February, and was up 7% from March 2012.
Gold had tumbled in a freakish manner a few days back. There were concerns that debt stricken European country Cyprus might have to sell gold holdings to raise finances. Traders fear that this would load up supplies in global markets in the short term. Massive unloading in Gold ETF's was also responsible for the worst crash in gold prices for three decades.
However, the demand-supply scenario remains in favor of the metal. Total recycled gold supplies went up nearly 34% to 1,625 tonnes in CY 2012 from 1,212 tonnes in CY 2008 due to the massive spurt in prices last year. This source of inflow is surely likely to see moderation this year given the 20% drop witnessed in prices from year to date.
The movement in today's session was worn out though a freakish up move of nearly Rs 200 in a span of minutes did a lot of damage to intraday sentiments. MCX Gold futures ultimately dropped, extending a break under Rs 27000 per 10-gram levels. The metal quotes at Rs 26902 per 10 grams, down Rs 249 per 10 grams or 0.91% on the day.
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