Sharp Fall In Gold Below $1550 Weighed By Strong Greenback

Gold............ 
Gold futures tumbled sharply below a key level of $1,550 again, as the dollar climbed and U.S. stock futures fell. U.S. stock market futures and oil prices were also moving lower ahead of reports due later Friday on U.S. retail sales and producer prices in March. On the Comex division of the New York Mercantile Exchange, gold futures for June delivery quotes at $1,547.50, down $17.05 or 1.10%, after falling near $1,544 per ounce. Silver quotes at $27.30, down 0.39 or 1.41% from last close. Euro quotes at $1.31, down 0.29% from last close.
Gold futures dipped, despite a lower GDP growth
outlook for the U.S. from the International Monetary Fund. The IMF released a draft of its World Economic Outlook, in which it pared estimate for U.S. GDP growth this year to 1.7% from a previous estimate of 2%. The IMF also cut its estimate for global growth to 3.4% from 3.5%. On Wednesday at a speech given before the Economic Club of New York, IMF Director Christine Lagarde urged global central banks to keep their ultra-loose monetary policies in places to support economic growth. Loose monetary policy has also been seen as supporting gold over the past few years and some traders are skittish that if the Federal Reserve winds down or ends quantitative easing this year, gold futures will be hammered.
Europe-area problems appeared to be heating up again on Friday after Cyprus President Nicos Anastasiades said on Friday that he will ask the European Union for extra assistance to get his struggling nation back on track, as the bailout costs appear to be higher than expected, according to AFP. A report quoting German authorities said the amount of aid is “not up for discussion.” The financially troubled country has reportedly agreeing to sell excess gold reserves to help with its bailout efforts.
Investors this week heard from Goldman Sachs, which dropped its gold forecast for 2013 to $1,545 an ounce, down from a prior forecast of $1,610. Also, minutes of the latest Federal Reserve meeting showed members were at odds about when to stop quantitative easing.
MCX June delivery Gold quotes at Rs 29039, down Rs 145, from last close, after hitting low at Rs 28,945 level and the supports are seen at Rs 28,750, Rs 28,650 and resistance is at Rs 29150, Rs 29250 level. Silver May contract quotes at Rs 51261, down 0.82% from last close.

Source by Commodity Insights