Thursday, March 14, 2013

Strong Dollar Weighs Gold

Gold...
Gold futures tumbled sharply as dollar gained against the Euro, ahead of a two-day economic summit of European Union leaders. On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at $1,579 a troy ounce, down $8.60 from the last close. The Silver April contract quotes at $ 28.69 a troy ounce, down 0.93% from last close. Euro currency was trading lower at $1.2918, down 0.38% from last day. Gold prices struggled for upside traction due to a slightly stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains. EU leaders gather in Brussels today for a two-day summit to endorse plans for “structural” assessments of national budgets and discuss a bailout for Cyprus.
Local currency ended the day at Rs 54.32 per USD, up 0.03% from last close, after hitting the session low at Rs 54.52 per USD. Local gold futures tumbled around Rs 200 per 10 grams from the last close, triggered by weak global cues and appreciation in the local currency. The MCX Gold April gold tumbled to the low of Rs 29301, down Rs 188 from last close and the next support is at Rs 29250, Rs 29,120 and resistance at Rs 29420-29500 level. Silver slipped for second day with May contract quotes at Rs 54,261, down Rs 457 or 0.83% from last close. Technically, the counter is likely to find strong support at Rs 54,000, Rs 53,800 and resistance is at Rs 54,500, Rs 54,750 level.
Source by Commodity Insights

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