Gold Continues To Be In Doldrums

Gold....

Gold futures tumbled back in the Asia electronic trades today as traders take profits after yesterdays climb in prices. Oil futures also pulled below $94 a barrel exerting pressure on the metal.
Gold ended higher yesterday due to a weak US dollar. The weekly U.S. jobless claims report was released on Thursday and showed a bigger decline in claims than expected, but the data had little impact on the metals.
Gold for June delivery is trading down $4 at $ 1560.9 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it ended higher by $6.1 or 0.4% at $1,564.9 an ounce. Prices had shed almost 2% a day earlier.
Gold prices slid Wednesday after the release of Goldmans note and Federal Open Market Committee minutes detailing Fed discussions of an end to its stimulus efforts. Gold for April delivery fell $27.90 an ounce, or 1.8%, to $1,558.30 on the Comex division of the New York Mercantile Exchange.
Investment bank Goldman Sachs Group Inc. said Wednesday that golds prospects for the year have eroded, recommending investors close out long positions and initiate bearish bets, or shorts. The shift in outlook was the latest among banks and investors who have soured on gold as its dozen-year runup has been followed by a 12% decline in the last six months.
Goldmans note followed another major blow to the metal last week from Soci�t� G�n�rale. The French bank declared The End of the Gold Era in the title of its report, positing not just the possibility of a bear market but an outright crash and saying gold may have had its last hurrah.
Deutsche Bank and UBS both cut their average gold price forecasts yesterday, to $1637 and $1740 respectively.
MCX June gold futures may open todays session near Rs 29170 levels with support around Rs 29070 levels and resistance near Rs 29220 levels.Yesterday, it closed lower by Rs 46 at Rs 29,184 per ten grams. Prices rose to a high of Rs 29,288 per 10 grams and fell to a low of Rs 29,055 per 10 grams during the days trading.
Source by Commodity Insights