Gold........
Gold inched up in the Asia electronic session today with the nonfarm
payrolls data being the crucial trend setter for the commodities and
equities to be watched this week.
Gold futures for August delivery
are trading up $2 at $1395 per ounce on the Comex division of the New
York Mercantile Exchange. On Friday, it tumbled 1.75% on Friday to
settle the week at $1,387.35 a troy ounce, little changed on the week.
It may find support near $1350 levels and resistance near $1425 levels.
Investors
will be awaiting the release of Friday’s closely watched report on U.S.
nonfarm payrolls for further hints regarding the direction of U.S.
monetary policy. Any improvement in the U.S. economy could scale back
expectations for further easing from the Federal Reserve, weighing on
dollar-denominated commodities.
Gold futures came under heavy
selling pressure on Friday, after upbeat economic data added to
speculation over an earlier-than-expected end to the Federal Reserve’s
asset purchase program. Gold prices turned lower after the University of
Michigan said its consumer sentiment index rose to 84.5 in May, its
highest level since July 2007, from76.4 in April and up from a
preliminary estimate of 83.7.
A separate report showed that
manufacturing activity in the Chicago-area improved at the fastest pace
in over a year last month. The robust data bolstered expectations that
the Federal Reserve could begin to scale back its $85 billion a month
asset purchase program this year.
Data over the weekend showed
that manufacturing activity in China improved modestly in May. The
state-affiliated China Federation of Logistics and Purchasing said on
Saturday that its manufacturing activity index inched up to 50.8 from
April’s reading of 50.6.
MCX August gold futures may open today’s
session near Rs 27000 levels with resistance near Rs 27100 levels and
support near Rs 26900 levels.
Source by Commodity Insights
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