Hot Commodities: Gold Continues Its Downward Trend, Plummets Under $1200

Gold.......

Gold futures continued its downward trend in the European session today with the precious metal set for solid losses for the month of June.
European stock markets opened higher on Friday, with the week set to end on a positive note, in the wake of soothing comments by U.S. Federal Reserve officials. U.S. sentiment data and another wave of Fed speakers are on the calendar for Friday. FTSE 100 index rose 0.4% to 6,265.15, while the French CAC 40 index rose 0.2% to 3,768.37. The German DAX 30 index rose 0.4% to 8,019.27.
Today, the metal is also under pressure due to gains in the global equity markets. Gold for August delivery is trading down $11.6 at $1,200 an ounce, after having hit an intraday low of $1,179.40. The yellow metal is about to end the month of June down more than $200 an ounce.
Gold prices remained on a downward spiral Thursday, even as three Federal Reserve officials suggested the markets had overreacted after Fed Chairman Ben Bernanke's remarks last week that the central bank may start slowing the pace of stimulus as early as this year.
Such a move would be based on improvement in the economy that's in line with the Fed's forecasts, Bernanke had said. Speculation that the end of Fed stimulus would arrive sooner rather than later hit gold futures hard this month, as so-called quantitative easing has been credited for supporting a rally in gold in recent years.
Wells Fargo Advisors joined the downgrades for gold along with Goldman Sachs, Credit Suisse and HSBC this week. Wells Fargo Advisors cut its year-end target range for gold, saying it now expects to see prices settle at $1,225 to $1,325 an ounce. It has previously expected prices to end the year at $1,475 to $1,525 an ounce.
Gold production in China, the world's largest producer, is expected to rise about 10% this year to a record even as bullion prices slump, the nation's mining association said, according to media reports. The country recorded output of 403 tonnes last year. Production gained 12% in the first four months from a year earlier to 122.89 tonnes, according to the producer-funded China Gold Association.
MCX August gold futures tumbled below Rs 25000 earlier today down nearly Rs 400 per 10 grams. A fall below Rs 24900 may take it towards Rs 24700 levels today.
Source by Commodity Insights