Gold......
futures for August are witnessing a mild sell off today. The commodity rose impressively yesterday on ideas that the Fed is in no hurry to cutback on its asset purchases. The metal shot up near $1300 per ounce in as the dollar slipped and equities rallied. The yellow metal had consolidated around $1250 per ounce earlier in the week. Gold had eased after a strong US non-farm payrolls data on Friday but has added impressive gains as prices managed to stay above $1200 per ounce. COMEX Gold futures currently trade at $1281.50, up $1.60 per ounce on the day.
Gold futures shot up towards $1300 per ounce after the US Federal Reserve's policy meeting minutes showed officials were split on the future of the central bank's stimulus program. About half the Fed officials believe the central bank should end its $85 billion-a-month bond-buying program by the end of this year, suggesting the policy makers are divided on the timing of the coming wind-down of the program. Many other participants anticipated that it likely would be appropriate to continue purchases into 2014, the minutes from the June 18-19 meeting said.
Gold jumped after this, which fanned hopes that the easy money measure wouldn't be removed sooner than expected. Gold has benefited from the Fed's stimulus program, as many traders bought the haven asset to protect against perceived risks like higher inflation and a weaker US dollar. Now, these traders worry gold prices will struggle in the absence of the supportive measure.
The Bank of Japan (BoJ) stated yesterday that the country's economy is starting to recover modestly, marking the first time that the economy is in an expansionary mode. The upbeat assessment of the economy came as the BoJ left its huge monetary easing programme unchanged. The bank is to stick to its plan of pumping more than 60tn yen ($606bn; £402bn) a year into the economy. Japan's economy is expected to recover moderately on the back of the resilience in domestic demand and the pick-up in overseas economies, the BoJ said in a statement.
These factors had supported the global stocks yesterday and US markets also followed suit with the S&P hitting a record closing high. However, Gold slipped from highs near $1300, failing to edge higher and dropped further today amid a mixed undertone in the Asian stocks. The physical demand for gold remains in a decent shape and the recent price destruction is reportedly bringing in good buying from retail investors and central banks in emerging countries. The MCX Gold futures are consolidating around Rs 26700 per 10-gram level mark. The counter is quoting at Rs 26670, down Rs 7 per 10 grams on the day after hitting highs above Rs 26850 yesterday.
MCX Gold
Gold futures shot up towards $1300 per ounce after the US Federal Reserve's policy meeting minutes showed officials were split on the future of the central bank's stimulus program. About half the Fed officials believe the central bank should end its $85 billion-a-month bond-buying program by the end of this year, suggesting the policy makers are divided on the timing of the coming wind-down of the program. Many other participants anticipated that it likely would be appropriate to continue purchases into 2014, the minutes from the June 18-19 meeting said.
Gold jumped after this, which fanned hopes that the easy money measure wouldn't be removed sooner than expected. Gold has benefited from the Fed's stimulus program, as many traders bought the haven asset to protect against perceived risks like higher inflation and a weaker US dollar. Now, these traders worry gold prices will struggle in the absence of the supportive measure.
The Bank of Japan (BoJ) stated yesterday that the country's economy is starting to recover modestly, marking the first time that the economy is in an expansionary mode. The upbeat assessment of the economy came as the BoJ left its huge monetary easing programme unchanged. The bank is to stick to its plan of pumping more than 60tn yen ($606bn; £402bn) a year into the economy. Japan's economy is expected to recover moderately on the back of the resilience in domestic demand and the pick-up in overseas economies, the BoJ said in a statement.
These factors had supported the global stocks yesterday and US markets also followed suit with the S&P hitting a record closing high. However, Gold slipped from highs near $1300, failing to edge higher and dropped further today amid a mixed undertone in the Asian stocks. The physical demand for gold remains in a decent shape and the recent price destruction is reportedly bringing in good buying from retail investors and central banks in emerging countries. The MCX Gold futures are consolidating around Rs 26700 per 10-gram level mark. The counter is quoting at Rs 26670, down Rs 7 per 10 grams on the day after hitting highs above Rs 26850 yesterday.
Source by Commodity Insights
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