Gold futures slipped gain today as the US dollar surged past the 1.3900 Euro on back of stronger than expected pay rolls numbers. Investors await Friday's U.S. jobs data that could further boost the dollar, which would undermine bullion's appeal as a currency hedge.
The ECB and the BOE rates are due today and the ECB press conference will take the center stage. The dollar stayed firm against all the major currencies after climbing broadly the day before on improving U.S. jobs and industry data. Dollar was higher against the Euro on fears that Portugal could be the next euro zone country to face a debt crisis. The European Union vowed to hold Greece to an austere plan to tackle the most severe debt crisis in the single currency zone, but investor remained wary of more such problems.
MCX April gold futures were unable to sustain above Rs 16800 and fell to as low Rs 16632 levels today. The traders may sell it on rallies around Rs 16630-40 with target of Rs 16560 levels.
U.S. gold futures for April delivery eased $3.1 at $1,108.3 an ounce, compared with $1,112 an ounce on the COMEX division of NYMEX.
As the gold market weakened, holdings at the world's largest gold-backed exchange-traded fund, SPDR Gold Trust eased 0.14% to 1,110.339 tonnes as of Feb. 3, down 1.583 tonnes from the previous business day. Its holdings had stood unchanged for about two weeks.
