Gold futures tumbled below $1375 an ounce in the Europe trading today extending its weekly losses as dollar continued to have an upper hand.
The U.S. dollar strengthened Friday, trading at its best levels in 10 months after a Federal Reserve official projected the possible timing of a winding down of the Fed’s bond buying. The ICE dollar index, which measures the greenback’s movement against six other major currencies, sat at 83.895, up from 83.758 on Thursday.
The greenback fell during Thursday’s session following a climb in U.S. weekly jobless claims, mixed signals from the housing market, and data showing conditions in the Philadelphia region’s manufacturing sector worsened this month.
The ICE dollar index was on track for a rise of roughly 1% for the week, benefiting in part from a fall in the euro after disappointing first-quarter gross domestic product reports from France, Germany and the euro zone.
Gold for June delivery are trading down $12 at $ 1375 per ounce on the New York Mercantile Exchange. Yesterday, it shed $9.30, or 0.7%, to settle at $1,386.90 an ounce. Including Thursday’s loss, prices have fallen 5.9% in six straight trading sessions. They settled Thursday at their lowest since April 17.
The World Gold Council said in a report on Thursday that investors during the first quarter didn’t buy enough physical gold to offset outflows from gold-exchanged traded funds. Total world gold demand was 963 metric tons in the first quarter, down 13% from the same time a year ago, according to the report.
But the World Gold Council also said total ETF gold holdings in the first quarter were higher than the year-ago period, and demand for jewelry, bars and coins increased.
MCX June bullion futures pierced below Rs 26000 trading at Rs 25957 per 10 grams. It may bounce back from the Rs 25920 levels today.
Source by Commodity Insights
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