Gold On Recovery Trail, Settlement Rules Activity

Gold.....

MCX Gold futures are on a recovery trail today after correcting in the last week. The commodity failed to hold on to its one month high above $1600 per ounce in the last week and corrected. Strength in the US dollar and the looming expiry of the April series on COMEX ensured that the prices drop under $1600 per ounce on Thursday last week as traders eyed at a long weekend owing to the Easter Holiday. The commodity quotes at $1599.40, up $3.70 per ounce right now.

The metal traded mostly in a sideways manner last week even as Europe continued to jostle with the debt crisis. The greenback edged higher by almost one percent in the week and hit near five-month highs against the Euro. The ETF continued to slash their holdings in Gold as per a market survey. The holdings of Gold under eight Gold backed exchange traded products declined by 7.2 percent to 70.66 million ounces since December ending.

SPDR Gold ETF holdings, which are the largest in the world, witnessed a decline of 12 percent to 39.26 million ounces. Gold has been in disarray in last few months after a continuous rise for the last twelve years. Prices had tanked to their nine-month lows in February 2013. However, a persistent spell of bargain hunting has supported the commodity thereafter.

MCX Gold futures for June, the recently turned benchmark contract witnessed a gap up opening today. The counter is quoting at Rs 30068, up Rs 83 per 10 grams or 0.28% on the day. The open interest in the counter is up by 3.70%. The near month April futures are up Rs 90 per 10 grams with 6% drop in open interest as traders eyed its expiry on 5th April 2013.
Source by Commodity Insights