MCX Gold futures are expected to open nervously today as the global prices dropped heavily in Asia after a mild sell off in the last session. The losses in gold were curbed to a certain extent in the overnight trades on falling US dollar but traders were in no mood to keep the yellow metal afloat today after prices failed to hold on above $1390 per ounce levels.
The US dollar plummeted yesterday, extended this week's losses versus the euro after policy makers in the UK and the euro area held steady on interest rates, as expected. The Bank of England kept its key interest rate at a record low 0.5%, despite the recent run up in inflation while the ECB also maintained its benchmark rates at 1%. The US currency witnessed severe selling pressure in New York trades as the number of US workers who filed new applications for jobless benefits jumped 35,000 last week to 445,000, the highest level in more than two months, following the sharp increase largely to administrative backlogs. A successful bond auction for Spain helped also supported the euro. Traders shrugged off these cues and sidelined reports stating that the US trade deficit unexpectedly narrowed to $38.3 billion in November from a revised $38.4 billion in October.
COMEX Gold futures cut losses after dropping from highs above $1390 in an intraday swing of more than 10 dollars and closed with mild gains at $1387 per ounce. The prices fell nastily today and gave up another 10 dollars in Asia. MCX Gold futures for February managed to rebound from levels under Rs. 20400 per 10 grams, extending a regular pattern these days and closed at Rs. 20438, its best level in nearly eight sessions. Prices should drop under Rs. 20400 per ounce right at the start.
