Gold futures are trading in a rangebound manner today with many important event on the economic front this week. Gold traders will be hooked on interest rate decisions by the European Central Bank, the Bank of England and the Bank of Japan. To add more the Friday’s data on U.S. nonfarm payrolls will also be closely watched.
Gold for delivery in April are up $2.6 to trade at $1,574.90 an ounce in Asia electronic trading hours on the Comex division of the New York Mercantile Exchange. Gold fell $5.80, or 0.4%, to settle at $1,572.30 an ounce on Friday for the lowest settlement for a most-active contract since July 18. By Friday’s close, prices had tallied a three-session drop of more than $43 an ounce, or 2.7%.
Losses in equties are giving a safe haven support to gold today. Investors are turning away from stocks today in Asia, with Chinese stocks particularly hard-hit.
Gains for the U.S. dollar have dampened gold’s appeal to holders of non-U.S. currencies. The ICE dollar index traded at 82.289 on Monday in Asia, up slightly from 82.265 in late North American trading on Friday.
The U.S. dollar and euro weakened against the yen Monday after a Japanese government nominee for central-bank chief said it would be difficult to buy foreign bonds, and as fresh property curbs hammered Chinese equities. The dollar was fetching ¥93.35 in Tokyo afternoon trade, compared with ¥93.58 in the U.S. late on Friday. The euro was trading at ¥121.50, down from ¥121.87.
MCX April gold futures are trading down nearly Rs 60 at Rs 29684 per 10 grams. The counter may face a resistance near Rs 29745 levels with supports around Rs 29640 and Rs 29600 levels.
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