Gold futures recovered on some bargain hunting as the 3-month low prices allured the investors to buy the commodity.
COMEX April Gold futures climbed as much as $20 an ounce on Globex finding support after tallying a loss of more than $65 during a losing streak that spanned three sessions in a row.
MCX Gold futures were slightly weak today, trading at Rs 16245 down over Rs 40 per 10 grams. The movement in the domestic gold futures is diverse from the international gold on Monday due to price variation in the commodity on MCX on Saturday. The traders may buy on dips with target of Rs 16310 and stop loss of 16200.
This week is relatively quiet week in the US on the data front, although wholesale and business inventory numbers will be closely watched. On Wednesday the US learns its monthly trade balance and monthly fiscal budget disaster, which is currently very much in focus. January retail sales and the first Michigan Uni consumer sentiment reading of the month will also draw attention.
The US Treasury will auction US$40bn of three-year notes, US$25bn of ten-year notes and US$16bn of thirty-year bonds as part of its eternal program to fund its deficit. Late last year interest for such issues from foreign central banks was a little wobbly as the US dollar quietly retreated. By contrast, this week's issues are likely to be better received given sovereign debt fears across the pond.
In the context of China trying to pull the reins on bank lending, next week sees releases of Chinese money supply, new loans and trade balance. The highlight in Europe outside of Club Med default concerns will be the first release of the EU fourth quarter GDP on Friday.
