MCX gold futures are trading lower in the European electronic trades today pressurized by gains in the Indian Rupee against the US Dollar. On the economic front later today investors will assess manufacturing activity reports from the euro zone and the U.S.
MCX August bullion futures
are trading down nearly Rs 40 at Rs 25628 per 10 grams. A break of Rs
26690 levels is required to move in the bullish zone with resistance
near Rs 25800 levels. The rupee today rose by 10 paise to 59.29 against the dollar in early trade at the Interbank Foreign Exchange market on increased selling of the US currency by exporters. Strengthening of the euro against the dollar in overseas market and a better trend in the domestic equity market also supported the rupee, forex dealers said.
The rupee had rose by a staggering 80 paise, its biggest single-day gain in last nine months, to close at 59.39 amid signs of strong fund inflows on Friday. Meanwhile, the BSE benchmark Sensex rose by nearly 140 points to 19,533.
Gold for August delivery rose $16.8 to $1,240.5 an ounce in electronic trade. The precious metal on Friday closed the second quarter with loss of 23%, the worst quarterly decline since modern trading began in the mid-1970s.
Separate reports released Monday showed further slowing in China’s manufacturing sector in June. China is a major consumer of gold.
The Chinese government reported its manufacturing Purchasing Managers’ Index (PMI) dropped to 50.1 from 50.8 in May. A separate survey from HSBC showed its own monthly PMI declining to 48.2 in June from 49.2 in May. A reading below 50 shows deterioration in activity, while one above signals an improvement.
Source by Commodity Insights
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