Gold Recovers After Big Drop

Gold....

Gold futures recovered slightly in the Asia electronic session today getting some safe haven appeal after the commodity slumped yesterday on cut in the price forecast by Goldman Sachs. 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. 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. Goldmans note followed another major blow to the metal last week from Société Générale. 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. China, the worlds second-biggest gold buying nation last year, recorded an $884 million trade deficit in March, official figures published Wednesday show. Year-on-year export growth fell to 10%, down from nearly 22% a month earlier, while imports rose by 14% from a year earlier. MCX April gold futures tumbled nearly 2% yesterday to end the session at Rs 29230 per 10 grams. It may open slightly higher today at Rs 29270 levels with resistance near Rs 29350 levels and support near Rs 29200 levels. Source by Commodity Insights