Gold rebounded from levels under $1100 per ounce yet again as the persistent weakness in the equities and concerns over the Greece fiscal health made the commodity find some buying support. The prices have been consolidating around $1100 per ounce mark in the current week as the International Monetary Fund's planned gold sale and the stupendous strength in the US dollar arrested any upside pressures.
World equities sunk today in reaction to a surprise rate hike by the U.S. Federal Reserve. The Fed stressed that the move doesn't indicate an imminent tightening of its target rate, but the dollar spiked on views that hike could come and that put pressure on commodity prices.
Euro is still hovering around a 10 month low of under 1.3500 against the dollar and played a mega part in pulling COMEX April Gold to an intraday low of 1099.30 per ounce in the Asian trades. The commodity has shown a tendency to rebound from these levels and did so today as well. The counter currently quotes at $1109.90 per ounce, still down $8.80 from the previous close.
MCX Gold futures are quoting at Rs 16676, down Rs 99 or 0.60% from the previous close with 6.6% drop in the open interest. The counter is likely to move in a range bound manner from hereon with the strong support of Rs 16600 ounce again coming in the play in case if dollar continues to appreciate further.
