MCX Gold In Throes Of Settlement

Gold......

MCX Gold futures were dominated by the settlement related trading activity today after correcting in the last week. The commodity failed to hold on to its one month high above $1600 per ounce in the last week and corrected. Strength in the US dollar and the looming expiry of the April series on COMEX ensured that the prices drop under $1600 per ounce on Thursday last week as traders eyed at a long weekend owing to the Easter Holiday. The commodity quotes at $1597.30, up $1.60 per ounce right now. Prices had made a feeble attempt to hold on above $1600 per ounce before.

The metal traded mostly in a sideways manner last week even as Europe continued to jostle with the debt crisis. The greenback edged higher by almost one percent in the week and hit near five-month highs against the Euro. The US currency is consolidating around 1.2800 levels against the Euro right now as traders eye the development in Cyorus and exactly how much money the bank depositors could lose.

Asian equities slipped today as a bounce in Chinese manufacturing conditions failed to boost sentiments and traders resorted to profit selling. Chinese manufacturing activity picked up in March, with the official purchasing managers' index surging to nearly one year high. The country's official purchasing managers' index, a government survey of manufacturers, rose to 50.9 in March from 50.1 in February. It was the highest reading since April last year, indicating that growth in manufacturing activity accelerated.
MCX Gold futures for June, the recently turned benchmark contract witnessed a gap up opening today. The counter edged up towards Rs 30100 and then slipped. It is currently quoting at Rs 30009, up Rs 24 per 10 grams on the day. The open interest in the counter is up by 7.39%. The near month April futures are up Rs 69 per 10 grams at Rs 29463 per 10 grams with a massive 27% drop in open interest.
Source by Commodity Insights