Gold On A Roll, Good Gains Emerge In Global And Local Markets

Gold.......... MCX Gold futures added handsome gains as the global prices extended their recovery today. The first session of the week saw COMEX Gold add around three percent on ideas that the global fund managers are trimming their recent pile of shorts after prices tanked to two and half year lows last week. The key developments over the weekend supported gold. A statement from the G-20 meeting late Friday was interpreted as a wider international support for Japan's aggressive easing measures. COMEX Gold futures added impressive gains in tune with other commodities as well as broad equity indices throughout the electronic session today and currently quite at $1433.30, up $37.70 per ounce. The Group of 20 major economies agreed in their recent meeting that Japan's huge monetary easing measures unveiled this month were necessary to boost the country's stagnant economy. In a statement following their meeting in Washington, G20 finance chiefs said the policy actions are intended to stop deflation and support domestic demand. This provided good support to equities in Asian trades. European markets followed these gains after Italian parliament over the weekend re-elected Giorgio Napolitano as president, following weeks of political uncertainty. The gains in equities meant that the beaten down commodities space was back in business. Oil carved out good gains from lows and COMEX Gold extended a break above $1400 per ounce levels, hitting $1440 per ounce in the course of the session. Local MCX Gold futures were also on a roll, benefiting from the surge in global prices. The retail spot gold market has witnessed very good buying in the last week, confirming ideas that the frenzy of buyers would return in case the metal witnesses a further correction. The benchmark MCX futures broke above Rs 26400 per 10 grams and currently trade at Rs 26455, up Rs 407 per 10 grams or 1.57% on the day. The open interest is up by a massive 8%. Source  by Commodity Insights