Gold Recovers From Early Losses On Weak Greenback

Gold.......

Gold futures recovered from the early losses on weak greenback in Thursday's evening sessions and traded in range bound manner, as investors looked ahead to the European Central Bank meeting later in the session. Market players were also awaiting data on U.S. jobless claims later Thursday to assess the strength of the U.S. economy and the need for further stimulus from the Federal Reserve. The ECB was not widely expected to make any changes to monetary policy at its monthly meeting later Thursday but the bank's post-policy meeting press conference with President Mario Draghi would be closely watched. The Bank of England's Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375 billion. The minutes of the meeting will be published at 9.30am on Wednesday 19 June. U.S. stock futures pointed to a higher open on Thursday, as markets eyed the release of U.S. data later in the day amid growing uncertainty over the future of the Federal Reserve's stimulus program. The government of India on Wednesday raised the import duty on gold to 8% from 6% in a bid to rein in import of the yellow metal and help curb a yawning current account deficit. According to the World Gold Council, India could import as much as 400 tonnes of gold in the first three months of the current financial, a 200% annual increase, raising the chances that the current account deficit could worsen in the new financial year. India imported 162 tonnes of gold in May alone. The Fed's Beige book showed last night that the overall economic activity increased at a modest to moderate pace since the previous report across all Federal Reserve Districts except the Dallas District, which reported strong economic growth.

The COMEX August Gold was trading higher at $1,403.85 on ounce, up $5.35 or 0.38% from last close. Meanwhile, Silver July contract was trading up at $22.572 on ounce, up 0.100 or 0.44% from last close. Euro was trading up at $1.3116, up 0.0025 or 0.19% from last close.

Indian gold futures recovered from the early losses tracking the recovery in the international gold prices amid weak Indian rupee. The MCX Gold for the August delivery quotes at Rs 27,695, up Rs 14, after trading in the range of Rs 27,749-27,490 levels. Technically, the counter may face resistance at Rs 27,850-27,900 and supports at Rs 27,490-27,390 level. July Silver quotes at Rs 44,325, up Rs 107 or 0.24% from last close.
Source by Commodity Insights