Gold for August delivery rose $14 to $1,406 an ounce in electronic transactions on the Comex division of the New York Mercantile Exchange. Prices on Wednesday settled higher by or 0.9%,
In Asia, the Nikkei Stock Average, which had been dropping throughout most of Thursday’s session, closed down 5.2%, with the biggest losses coming in the last hour or so of trade.
In turn, the dollar fell below ¥101 as investors backed out of equities and moved into the Japanese currency. Dollar weakness tends to lift prices for dollar-denominated commodities, as it makes them less expensive for holders of other currencies to buy.
Wednesday’s move higher for gold was aided by strength in the euro against the U.S. dollar, and the euro on Thursday extended gains against the greenback. The shared currency traded at $1.2953 compared with $1.2930 seen in North American trading a day prior.
Meanwhile, the World Gold Council, an industry group, said Asian gold demand from this April to June will reach a quarterly record as bullion consumers in the region take possession of supply freed up by selling from ETFs.
But outflows from gold exchange-traded funds and cuts in forecast for gold prices have also weighed on the precious metal, which is on pace to fall 5.5% in May. Earlier this month, it had been on track for a decline of more than 7%
MCX June gold futures are trading up more than Rs 200 at Rs 26847 per 10 grams. The counter may face a resistance near Rs 26900 levels and Rs 27100 levels.
Source by Commodity Insights
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