Gold Minimizes Losses As Dollar Dips

Gold...

Losses in gold minimized as the US dollar tumbled in Asia today, after it had gained yesterday after strong U.S. retail sales data adding to an upbeat view of the world’s largest economy. However the metalc ontoinued to face a stiff resistance near $1600 an ounce levels.
The dollar retreated modestly in Asia on Thursday, with the Australian dollar grabbing the spotlight after the release of stellar employment figures for February. The ICE dollar index , which measures the greenback against a basket of six other currencies, sat at 82.921, down just slightly from 82.936 in late North American trading on Wednesday.
The Australian dollar surged to $1.0364, up from $1.0289 in late trading Wednesday, after data from the Australian Bureau of Statistics showed Australia’s jobless rate remained steady at 5.4% in February against economist expectations for a rise to 5.5%. The economy added 71,500 jobs in the month, far outstripping expectations for a net gain of 10,000 jobs.
COMEX April bullion is trading down just $0.7 $1587.7 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it fell $3.30, or 0.2%, to settle at $1,588.40 an ounce. It had climbed to as high as $1,598.80 during the session.
However the central bank buying should continue to support the metal in the longer term. The central banks are reducing allocations to US dollars and euros and are shifting to purchases of traditional assets such as gold and Japanese yen and new alternatives including Chinese renminbi a report from the World Gold Council said Wednesday.
The official reserves of global central banks have grown from $2 trillion in 2000 to more than $12 trillion in 2012. During this same twelve-year period the data shows significant shifts away from the US dollar while the share of “other” currencies in reserve composition has tripled in absolute terms since 2008.
MCX April gold futures are trading down nearly Rs 80 at Rs 29409 per 10 grams. A fall below Rs 29400 may take it tumbling towards Rs 29370-40 levels. However a rise above Rs 29490 may take it towards Rs 29540-70 levels.
Source by Commodity Insights