Gold Drops In Europe Session

Gold......

Gold futures dropped in the European session today after trading moderately higher in the Asia trading hours. The metal again tripped lower following the weak china manufacturing data. Gold for June delivery fell $11.1 to $1,410.1 an ounce on the Comex division of the New York Mercantile Exchange. In Asian trading, gold reached $1,426.40 an ounce, its highest level since April 12. On Monday it marked the third consecutive session of advances, rising $25.60, or 1.8%, to $1,421.20 an ounce. The gain came as figures from the Commodity Futures Trading Commission’s Commitments of Traders report suggested big traders, including hedge funds and commodity trading advisors, reduced their bets for a fall in gold prices. Gold prices last week lost 7%, and face a drop of roughly 11% in April. On Tuesday, data from HSBC showed Chinese manufacturing-activity growth slowed in April. The preliminary or “flash” version of HSBC’s manufacturing Purchasing Managers’ Index fell to a two-month low of 50.5 from March’s final reading of 51.6. Citing China concerns and bearish indicators, Goldman Sachs on Monday cut its three-, six- and 12-month copper forecasts following a heavy selloff over the past two months. May copper futures on Tuesday fell 4 cents, or 1.2%, to $3.09 a pound, extending Monday’s loss of 0.6%. MCX June gold futures are trading down nearly Rs 150 at Rs 26217 per 10 grams. It should face a resistance near Rs 26500 levels and support around Rs 26150 and Rs 26000 levels. Powered by Commodity Insights