The U.S. dollar rose against Japan’s currency Monday, flirting with the 100-yen level after financial officials from the world’s top economies refrained from criticizing Japan’s weakening of the yen through its monetary-policy program. The dollar rose to ¥99.82, up from ¥99.52 late Friday in North American trade.
European stock markets opened higher on Monday, taking inspiration from a strong session in Asia, where markets rallied as the yen tumbled after a statement from the Group of 20 major economies. Germany's DAX 30 index added 0.8% to 7,517.28, while France's CAC 40 index put on 0.7% to 3,678.84. The U.K.'s FTSE 100 index added 0.7% to 6,330.59.
A statement from the G-20 meeting late Friday was interpreted as a wider international support for Tokyo's aggressive easing measures, which recently have sent the yen to multi-year lows.
June delivery gold futures are trading up $29 at $1424 per ounce on the Comex division of the New York Mercantile Exchange. It should find support at $1,322 levels and a resistance near $1430 levels.
In the week ahead, investors will be awaiting Friday’s U.S. data on first quarter growth. Investors will be closely watching this data as they attempt to gauge the strength of the U.S. recovery. Any improvement in the U.S. economy could scale back expectations for further easing from the Federal Reserve.
MCX June gold futures are trading up more than Rs 250 at Rs 26305 per 10 grams. It should face a resistance near Rs 26400-500 levels.
The festive season should also support the Indian gold prices in the physical markets. India celebrates Akshaya Tritiya, a key gold-buying festival, next month, while the wedding season will continue until early June. So far this month, the Indian gold prices have come down more than Rs 4000 per 10 grams and the silver prices have dived nearly Rs 10000 or 19%.
Source by Commodity Insights
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