Gold Continues To Dwindle

Gold......

Gold futures tumbled again in the Asia electronic session today taking cues from the weak equity markets and crude oil and other metals. Most Asian markets declined Thursday as sentiment took hits from falling commodity prices and weak U.S. corporate results. Mainland Chinese and Hong Kong stocks were supported by economic data showing an improvement in foreign direct investment inflows and home prices in China. Foreign direct investment into China rose 5.65% in March from a year earlier to total $12.4 billion, the Ministry of Commerce said Thursday. The gain was well above the 1.44% average increase in FDI over the January-March period. Gold for June delivery is trading down $18 at $1364 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it shed $4.70, or 0.3%, to settle at $1,382.70 an ounce. It touched a low of $1,365 as well as a high of $1,395.20. It settled lower Wednesday, failing at their earlier attempt at gains, as investors looking for shelter from the steep declines in the U.S. stock market favored the dollar over the metal as a haven. On Tuesday, gold rose $26.30, or 1.9%. The advancesfollowed two consecutive sessions of declines which stripped prices of more than $200 an ounce. Copper and silver futures also declined, with copper sinking almost 4% and silver logging its lowest close in about 18 months as the slowdown in China's growth continued to feed concerns over demand for the industrial metals. MCX June gold may open today's session near Rs 25600 levels with support around Rs 25450 and Rs 25300 levels. Fall in the gold prices is cheerful news for the Indian buyers at the time when the festive and wedding season kicks in. India celebrates Akshaya Tritiya, a key gold-buying festival, next month, while the wedding season will continue until early June. So far this month the Indian gold prices have come down more than Rs 4000 per 10 grams and the silver prices have dived nearly Rs 10000 or 19% so far in the month of April. Powered by Commodity Insights