Gold........
Gold futures extended the rally towards $1400 an ounce in Asia electronic session today snapping a seven-session losing streak. The bullion traders are now focusing on FOMC meeting minutes
Gold for June delivery is trading up $6 at $ 1389 an ounce in Asia electronic session on the Comex division of the New York Mercantile Exchange. Yesterday, it settled up $19.40, or 1.4%, to $1,384.10 an ounce after tapping a low below $1,340.
Gold prices dropped sharply during the Asian trading session as investors continued to sell the precious metal amid speculation over an earlier-than-expected end to the Federal Reserve’s quantitative easing program.
Gold prices have fallen about 6% this month following April’s loss of 7.8% with the market hurt by constant outflows from gold-backed exchange-traded funds, including SPDR Gold Trust.
Sentiment on the precious metal was expected to remain bearish after data showed investors held 74,432 short contracts on gold, the highest level since June 2006.
Gold traders are now looking ahead to Wednesday’s Federal Reserve minutes, as well as testimony on the economic outlook and monetary policy by Fed Chairman Ben Bernanke.
Elsewhere on the Comex, silver for July delivery fell 3.7% to trade at $21.52 a troy ounce.
Silver futures were down by as much as 9.5% earlier in the session to hit a daily low of $20.21 a troy ounce, the weakest level since September 14, 2010.
According to some market participants, silver’s plunge was triggered by a sudden move higher in the yen during early Asian trading hours. The yen found support after Japan’s Economy Minister Akira Amari indicated that the yen’s correction from excessive strength was almost over and said that further yen weakness could have a negative impact on Japan’s economy.
MCX June gold futures may open today’s session above Rs 26000 with resistance near Rs 26100-200 levels.
Source by Commodity Insights
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