The week gone by, Gold has been pretty volatile, sometimes breaking conventional relationship with the Dollar index.
Spot Gold settled at $1357.05 down by 0.49 percent. COMEX April contract managed to gain 0.17percent on an average throughout the week to settle at $1360.40, where as MCX April contract able to make a mere gain of 0.07 percent last week to close at Rs.20340
Dollar Index gained 0.27 percent to weigh gold down .Asian equities showed confidence- led gold cheaper. The US treasury bill yields remained volatile, sometimes low enough from where Dollar took the cue- pushed gold to come down.
In the COMEX and MCX platform, participation was highly down showing negligence on Gold. SPDR Gold holdings has come down by 0.074 percent on last trading day and currently stands at 1225.53 tons.
OUTLOOK:
Gold spot is currently priced at $1357.71 up by 0.05 percent. Asian equity currently showing recovery with Dow Jones’s continuous rally and UK FTSE 100 closed at 0.71 percent up. Currently, Dollar Index is 78.415 down by 0.20 percent. Early morning Japan’s annualized GDP came better than expected.
Towards evening Euro zone industrial production is likely to come up while China’s trade balance data yet not announced. A global economic recovery outlook may suppress gold today paired by last week’s Japanese boosted confidence, U.S’s credit signal and Germany’s improved current account balance.
Overall, this week the economic releases for the U.S are likely to be good. Gold, on that basis may lose its value on lower participation. However, it’s an opportunity to buy at dip and hold for Gold’s glory to spread over other asset classes.
