Gold Recovers In Intraday Moves

Gold........
MCX Gold futures edged higher today as global prices recovered from the strong sell off and neared $1290 per ounce levels. The European equities recorded some gains as China's central bank clarified about the acute liquidity crunch being faced by the world's second largest economy. COMEX Gold futures for August slipped near its two and half year low in morning but rebounded to trade at $1286.30, up $9.20 per ounce on the day.

US dollar slipped from its three-week high against the Euro and supported the yellow metal. The dollar had cruised after the US Fed's “taper” comments last week, sending stocks and commodities lower amid a volatile activity in world markets. However, the Minneapolis Fed President Narayana Kocherlakota eased investors today by stating Fed has not become more hawkish and upcoming economic data would be eyed for further clarity.

In a keenly awaited move, the US Federal Reserve indicated last week that it would begin to taper its bond-buying program later this year. The Fed's announcement prompted dramatic declines in US markets on Wednesday and Thursday and also helped catalyse significant drops in international equity markets on Thursday. Ben Bernanke, the Fed chief told a news conference that the Fed expects to 'moderate the monthly pace of purchases later this year'.

Chinese equities launched a massive intraday rally as the central bank officials alleviated the worries over latest credit crunch to some extent. These gains spilled over into European stocks too, which are trading with gains of around 1-1.5%. Gold plummeted to fresh two and half year lows in global markets last week. However, the losses in local markets were limited as the Indian rupee dropped to a fresh all time low mark around 60 against the US dollar. The MCX Gold futures for August are quoting at Rs 26743, up Rs 18 per 10 grams on the day. Prices have recovered from a low of Rs 26541 per 10 grams.
Source by Commodity Insights