Gold futures for August delivery inched up 0.06% to $1,383.85 per troy ounce on the Comex division of the New York Mercantile Exchange in Asian trading Monday. It settled down 2.68% at $1,377.85 a troy ounce in U.S. trading on Friday. The metal may find support near $ 1340 levels and resistance near $ 1420 levels.
Speculators raised their net-long position by 19 percent to 57,113 futures and options by June 4, U.S. Commodity Futures Trading Commission data show. The holdings surged 60 percent in two weeks, the most since March, as short bets contracted.
In U.S. economic news delivered last Friday, the U.S. Labor Department said the U.S. economy added 175,000 jobs in May, but added the unemployment rate rose to 7.6% from 7.5%. The April reading was revised lower to 149,000 from 165,000 while the March reading was revised down to 138,000 from 142,000.
Over the weekend, China, the world’s second-largest economy behind the U.S., delivered a raft of disappointing data. After a crackdown by Chinese officials on manipulators that use currency conversions to boost export data, Chinese exports showed an increase of just 1% last month. Exports to the U.S. and European Union, China’s two largest export markets, declined for a third consecutive month.
Imports fell 0.3%, well below the expected 6% increase. China's consumer inflation dropped to 2.1%, below the expected reading of 2.5%, while producer prices fell 2.9%. Analysts expected PPI to drop 2.5%. Retail sales rose 12.9%, which met expectations.
Fixed-asset investment and industrial production also met analysts’ expectations with year-over-year gains of 20.4% and 9.2%. China’s M2 money supply rose 15.8%, but that was below the expected 15.9% increase. New loans totaled 667.4 million yuan, but that missed expectations of 850 billion yuan and down from April's 792.9 billion yuan.
MCX August gold futures may open the week near Rs 27600 levels with resistance near Rs 27700-750 levels and support around Rs 27500 levels. In the near term the commodity may face a resistance near Rs 27900 levels and support near Rs 27100 levels.
Source by Commodity Insights
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