GOLD LOOKS PALE AS EUROPE FALLS
DATE: 18/04/2012
Gold futures are looking pale as Europe started day on a bleak note after solid gains yesterday. Oil futures also came off ahead of the weekly oil inventories data.
Gold has been moving in a very tight range this week, not reacting much to the losses in equities neither to depreciation in the US dollar. It has been hovering between $1690- $1615 levels since last few weeks. A breakout is awaited which will decide the course of gold in the near term.
The market sentiment improved dramatically overnight as Spain successfully conducted a debt auction and the International Monetary Fund raised its global growth forecasts. Spain successfully sold EUR 3.18 billion of bills against a target of EUR 3 billion. The average 12-month yield for the sale was 2.62%, which is still significantly higher than an average yield of 1.42% for an auction held in late March.
The International Monetary Fund, for the first time since January 2011 raised its global growth forecast to 3.5% this year from a January projection of 3.3%. It also raised its forecast for growth in the US to 2.4% for 2013. While recognising that the eurozone still faces a recession with the potential risk of further defaults, the IMF noted that the region had stabilised since last year.
In Europe, Germany's DAX 30 index fell 0.2% to 6,785.75, the French CAC 40 index fell 0.3% to 3,281.08 and the FTSE 100 index was flat at 5,768.69.
MCX June gold is up nearly RS 70 at Rs 28553 per 10 grams in early Europe session today. It should face resistance near Rs 286
POWERED BY: COMMODITY INSIGHTS
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