Gold........
Gold futures bounced back in the Asia electronic session today as investors prepared for a statement on monetary policy from the U.S. Federal Reserve, as well as the preliminary estimate of second-quarter growth for the world’s largest economy.
The U.S. currency, as tracked by the ICE dollar index, is coming off a third straight weekly loss, dragged lower by expectations that the Fed will reiterate its stance on keeping interest rates low for the foreseeable future.
The ICE dollar index, a gauge of the greenback’s movement against six other major currencies, rose to 81.856, up from 81.815 late Tuesday in North America. The euro bought $1.3260, slightly less than $1.3265 on Tuesday.
Gold for December delivery is trading up $6.6 at $ 1331.4 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it fell $4.80, or 0.4%, to settle at $1,324.80 an ounce after Monday’s gain of $7.70, or 0.6%.
The consumer confidence index fell slightly in July to 80.3 from an upwardly revised 82.1 in June, the Conference Board said Tuesday.
Traders expect the FOMC to emphasize an accommodative monetary policy. Though many economists see the Fed as likely to decrease the amount of bond buying at its September meeting, there’s also speculation that tapering will begin near the end of the year or later. The Fed currently buys $85 billion a month in Treasury and mortgage-backed securities.
Before the central bank’s announcement at 2 p.m. Eastern time, the U.S. Commerce Department will release second-quarter gross domestic product numbers. Meanwhile, the European Central Bank and the Bank of England are due to each release statements on monetary policy Thursday.
MCX October gold futures may open today’s session near Rs 28350-400 levels with resistance near Rs 28550 levels.
Source by Commodity Insights
No comments:
Post a Comment