Gold Rises On Haven Buying

Gold.......

Gold futures rose in the Asia electronic trades today as losses in equity markets triggered safe haven buying in the metal. Yesterday, the metal ended lower, marking its first decline in four sessions just after the metal’s biggest one-day price gain in more than a year.

Gold for August delivery is trading up $6.2 at $ 1340.9 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it eased $1.30, or 0.1%, to settle at $1,334.70 an ounce.

On Monday, the August contract jumped $43.10, or 3.3%, to $1,336 an ounce. That represented the largest one-day percentage and dollar gain since June 29, 2012. The settlement was also the highest for a most-active contract since June 19 of this year.

The Reserve Bank of India (RBI) on Monday put further curbs on gold import mandating that banks and nominated agencies should retain 20 percent (or one fifth) of every lot of gold imports in the customs bonded warehouses. They will be able to import further gold only if they release the 75 percent of that stored gold for the purpose of exports.

The restrictions are meant to contain gold imports, which in addition to oil, is putting pressure on the current account deficit that soared to a record high of 4.8 per cent in 2012-13.

The RBI and the government have taken measures to curb the rampant demand for gold, which makes India the world's biggest buyer and sent May imports to a record 162 tonnes as people took advantage of falling prices.

MCX August gold futures may open today’s session near Rs 27540 levels with resistance near Rs 27600-620 around Rs 27460-40 levels.

Source by Commodity Insights