Gold was locked in dull trading today after capturing $1390 per ounce levels on renewed geopolitical worries as South Korea reportedly plans to conduct a massive live-fire drill as tensions with North Korea remain high. However, the gains were limited for the local futures as the Indian rupee edged higher against the greenback to approach levels of 45 as a bounce from three week lows extended. The US dollar was trading in a dreary manner and failed to provide much of cues for the gold prices.
The commodity dipped in the early New York trades last night on soaring equities before $1380 provided a very good support. The prices rallied back higher for most of the rest of trade and ended near its earlier high with a gain of 0.16%. The Euro zone debt woes continue with Moody's Investors Service now placing Portugal's government bond ratings on review for possible downgrade. The agency pointed to uncertainties about the nation's longer-term economic vitality, and concerns about its ability to access the capital markets at a sustainable price. The movement in the currency markets has been wayward though as holiday trading thins the overall movement. COMEX Gold is quoting at $1389.30 per ounce, up 50 cents per ounce from the previous close.
MCX Gold futures were seen moving in a thin range today after bouncing from levels near Rs 20500 last night. MCX Gold futures closed at Rs 20568 per 10 grams yesterday, up Rs 61 per barrel on the day and witnessed the emergence of some selling pressure as the Rs 20600 per 10-gram levels arrived. The counter eased from a high of Rs 20590 per 10 grams and currently trades at Rs 20538, down Rs 30 from the previous close.
