INTERNATIONAL GOLD FLOUNDERS NEARLY 1%
DATE: 16/04/2012
Gold futures floundered by nearly 1% in early Europe session today, as the losses in equities and gains in US dollar pressurized the metal and other risky assets. Crude oil futures tumbled to as low as $101.86 per barrel, COMEX silver slipped below $31.30 per ounce.
The dollar added to its recent gains Monday, with concerns over Europe's finances still dominating markets and turning investors away from riskier currencies. The ICE dollar index, which measures the greenback against a basket of six other currencies, traded at 80.116 in Asian trading hours, up from 79.828 in late North American trading on Friday.
However, the dollar weakened against the Japanese yen, buying ¥80.87, down from ¥80.99 late Friday. Meanwhile, Monday marked the first day in which the People's Bank of China widened the daily trading band for the yuan, allowing the dollar to move 1% in either direction from a daily midpoint set by the central bank. Previously, the dollar was limited to a maximum move of 0.5% from the midpoint.
European stock markets opened lower on Monday. The Stoxx Europe 600 index traded down 0.2% to 253.02, German DAX 30 index fell 0.5% to 6,553.44.The French CAC 40 index was off 0.2% to 3,184.29, while the FTSE 100 index was flat at 5,646.53.
June dated gold futures on COMEX fell to as low as $ 1642 an ounce and it was last seen trading at $ 1646 down $ 14.2. A fall below $1640 may result in another round of sell off in the commodity.
MCX front month gold futures are trading down just 0.4% at Rs 28474 per 10 grams as the Indian rupee fell to 3 month lows against the dollar protecting the domestic commodities from huge falls. The traders may watch for supports near Rs 28400 levels.
The Indian rupee declined by 32 paise to Rs 51.62 against the American currency on the Interbank Foreign Exchange in early trade on Monday, weighed down by dollar's gains against other currencies overseas.
POWERED BY: COMMODITY INSIGHTS
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