Gold futures extended gains in the Asia electronic session today logging gains for the first time in last six sessions. Gold has been propped up by buying after the commodity tumbling by nearly $50 in this week.
Gold for delivery in April is trading up $4.7 at $ 1583.3 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it climbed 60 cents to settle at $1,578.60 an ounce, after touching an intraday low of $1,554.30.
Is gold going to stay beneath the $1700 in 2013? Gold which hit the all time high of $1911.6 on 9th September 2011 was unable to breach the $1800 mark in 2012 and has not been able to seen the $1700 mark since the start of 2013. Infact the metal tumbled below $1600 an ounce levels after the Fed indicated a wrap up of the QE in the near future.
Gold is down more than 6% so far this year after climbing for a 12th straight year in 2012 as central banks from the U.S. to China boosted stimulus. Gold surged 70% as the Fed bought $2.3 trillion of debt in two rounds of easing from December 2008 through June 2011. The FOMC at its January meeting decided to continue $85 billion in monthly bond purchases.
Minutes of the Federal Open Market Committee’s Jan. 29-30 meeting, released on Wednesday, showed policy makers were divided about the strategy behind Chairman Ben S. Bernanke’s program of buying bonds. Some said an earlier end to purchases might be needed, while others warned against a premature withdrawal of stimulus.
MCX April gold futures contract may open today’s session near Rs 29770 levels with resistance near Rs 20810-40 levels.
Source by Commodity Insights
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