Gold Revisits $1600 In Asia

Gold.....
Gold futures reclaimed the $1600 an ounce in the Asia electronic session today getting some safe haven appeal as the equities tumbled on strong surge in Japanese Yen.
Japan’s Nikkei Stock Average was down 1.7% after dropping by as much as 2.7% in early trading, falling to its lowest level since March 6.
The yen strengthened against the U.S. dollar in the lead up to the Bank of Japan’s much-anticipated policy meeting later this week as investors speculated about whether or not the central bank will be able to meet the market’s easing expectations. The dollar fell below Y93.00 in early trading for the first time since March 6, and was recently at Y93.06 compared with Y93.21 late Monday in New York.
As expected the Reserve Bank of Australia on Tuesday left the country's key interest rate unchanged at 3%. The rate has been at 3% since December when monetary policy makers cut it by a quarter-percentage point. The central bank in a statement Tuesday said global growth is "forecast to be a little below average for a time, but the downside risks appear to be reduced."
Policy makers, led by Governor Glenn Stevens, also said labor costs remain contained "and businesses are focusing on lifting efficiency. These trends should help to keep inflation low, even as the effects on prices of the earlier exchange rate appreciation wane." Australia's currency was little changed after the decision, trading at $1.0466.
An ounce of gold on COMEX division of New York Mercantile Exchange is trading up $2.6 at $ 1602.6 per ounce. Yesterday, it gained $5.20, or 0.3%, to settle at $1,600.90 an ounce. Prices fell 0.7% on Thursday to $1,595.70. Trading on Comex was closed for Good Friday.
Data on Monday showed that the pace of sales and production at U.S. manufacturers slowed in March. The Institute for Supply Management’s survey of senior executives fell to 51.3% from 54.2% in February.
Gains for gold Monday also came as the U.S. dollar weakened. The dollar index, which measures the greenback’s performance against six other major currencies, dropped to 82.746 on Monday from 82.998 on Friday. Overall, however, the dollar has strengthened, with the dollar index scoring a gain of about 4% for the first quarter of the year.
MCX June gold futures may open today’s session near Rs 30035 levels with resistance near Rs 30090 levels and support near Rs 29970 levels.
Source by Commodity Insights