Gold futures went bumpety bump in Asia electronic trades Monday extending its decline to eighth consecutive session. The counter may find a support near $ 1335-1320 levels and resistance near $1395 levels in the near term.
Gold futures for June delivery are trading down $ 21 at $1344 an ounce on the Comex division of the New York Mercantile Exchange. It plunged 2.1% on Friday to settle the week at $1,357.75 a troy ounce. On the week, gold futures lost 6.1%, the second consecutive weekly decline.
It tumbled to a one-month low on Friday as investors continued to speculate over an earlier-than-expected end to the Federal Reserve’s quantitative easing program. Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, rose 0.5% on Friday to settle the week at 84.34, the strongest level since July 2010. The Fed is currently running a USD85 billion monthly asset-purchasing program, which weakens the greenback to spur recovery.
Sentiment on the precious metal was further dampened after quarterly financial filings released earlier in the week showed that hedge fund billionaire George Soros cut his holdings of gold-backed exchange-traded products in the first quarter. Funds run by Blackrock and Northern Trust also showed reductions, underlining concerns that investment demand is fading as U.S. stock market rallies to all-time highs.
MCX June gold may open today’s session near Rs 25750 levels with support around Rs 25650-600 levels.
Source by Commodity Insights
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