GOLD UNABLE TO SUSTAIN ABOVE $1600
DATE: 12/06/2012
Gold futures have been unable to sustain above $1600 off late and has been finding solid support near $1530 levels, the range gold has been hovering around.
The rate cuts, extreme risk aversion in the markets, are helping gold gain but at the same time sometimes risk aversion in the markets is also pulling it lower and hence avoiding it from sustaining much above $1600. The counter should continue to hover in the range of $1640-1540 levels. FOMC meeting and weekend Greece elections holds key for further momentum in gold.
COMEX August gold futures are trading down $7 at $ 1590 an ounce levels after ending higher by $5.4 or 0.3%, to end at $1,596.8 yesterday.
In currencies today, the ICE dollar index, which measures the greenback's performance against a basket of six major currencies, was at 82.530, compared with 82.529 in North American trade Monday. Dow Jones Industrial Average futures, meanwhile, rose 48 points, or 0.4%, to 12,358.
Industrial and Commercial Bank of China said that gold-investment demand in China may gain more than 10 percent this year as buyers seek a haven from Europe's debt crisis and the prospect of weakening currencies.
China will topple India this year as the largest bullion market as rising incomes bolster demand, the World Gold Council forecasts. Gold may gain for a 12th year in 2012 as European policy makers strive to avoid a breakup of the euro zone and the U.S. Federal Reserve weighs more stimulus to aid the recovery.
Greek voters are set to go the polls for the second time in two months on June 17 in a vote that may determine whether the country stays in the 17-nation euro. Goldman Sachs Group Inc. (GS) said gold remains the so-called currency of last resort, forecasting a rally by year-end, according to a May 9 report.
MCX August gold futures are trading up nearly Rs 30 at Rs 29793 per 10 grams. The traders may short it with target of Rs 29740, RS 29690 and stop loss of Rs 29824.
POWERED BY: COMMODITY INSIGHTS
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