Gold for August delivery are trading down $4 at $ 1412 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it rose $17.30, or 1.2%, to settle at $1,415.80 an ounce It traded as low as $1,391.20 earlier.
The metal climbed yesterday to highest level since mid-May as the dollar dropped against the euro and Japanese yen ahead of the latest monthly figures on U.S. employment.
On Wednesday, gold saw sharp midday gains, with the August contract rising by as much as $13, as stocks sold off following weak U.S. private-employment data from ADP. But it soon pared those gains to settle just 0.1% higher. Data in the U.S. Thursday showed jobless claims fell 11,000 to a seasonally adjusted 346,000 in the week ended June 1. Economists had expected claims to decline to 345,000.
The euro gained following the European Central Bank’s decision to stand pat on its lending rate and cut its 2013 growth forecast, while the yen rallied following Japanese Prime Minister Shinzo Abe’s Wednesday unveiling of plans to spur economic growth.
But gold investors’ top concern was Friday’s release of May data on the U.S. job market, which is likely to provide hints on whether the Federal Reserve will soon decide to taper its bond-buying program.
Draghi spoke at a news conference following a meeting in which the ECB kept key rates unchanged. Separately, the Bank of England also decided to keep interest rates the same. Draghi said the ECB sees a gross domestic contraction of 0.6% in 2013 versus a March forecast of a 0.5% drop. The ECB lifted its 2014 growth forecast slightly, to 1.1% from 1%.
MCX August gold futures may open today’s session near Rs 27840 levels with support around Rs 27750-700 levels.
Source by Commodity Insights
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