Gold Glows As Markets Fall

Gold...

Gold futures glowed in the Asia electronic session today as the metal is getting safe haven demand at the time when the Asia equities, US stock futures are trading lower. The markets are reacting to the details of a bailout of Cyprus over the weekend, which fretted investors about the potential implications of a decision to levy private bank deposits.
Gold futures for April delivery are trading up $1.7 at $ 1594.3 per ounce on the Comex division of the New York Mercantile Exchange. On the week, gold futures prices posted a gain of 0.8%, the second straight weekly advance.
In the near term gold futures are likely to find support near $1550 levels and resistance near $1610-20 levels.
Gold futures ended Fridays session mildly higher, as a broadly weaker U.S. dollar and indications the Federal Reserve will keep its asset-purchase program in place for the indefinite future boosted the appeal of the precious metal. Gold prices were higher as U.S. inflation data indicated that the Federal Reserve had sufficient scope to continue its quantitative easing program.
The Labor Department reported that U.S. consumer price inflation rose 0.7% in February, bringing the annualized rate of consumer inflation to 2.0%. Core consumer prices, which exclude volatile food and energy costs, also rose 2% year-on-year.
In the week ahead investors will be focusing on Wednesdays Federal Reserve policy statement, amid speculation over an earlier-than-expected end to the banks asset purchase program. Fed Chairman Ben Bernanke is to give a press conference after the release of the policy statement.
Also, data to be released include housing starts for February (Tuesday) and weekly jobless claims, existing home sales for February, the Philadelphia Fed index for March and leading economic indicators for February (Thursday).
Companies scheduled to release quarterly earnings statements include Adobe Systems (Tuesday); FedEx, General Mills, Lennar and Oracle (Wednesday); ConAgra Foods and Nike (Thursday); and Darden Restaurants and Tiffany (Friday).
MCX April bullion may open todays session near Rs 29400 levels with resistance near Rs 29470-500 levels. It ended the week at Rs 29375 per 10 grams up 0.05% on Saturday.
Source by Commodity Insights