Gold traded firm in Asia and Europe on the euro getting stronger on news that European debt crisis will be resolved. However, investors later liquidated their positions in gold they added last week as a hedge against currency market fluctuations which came from Greece debt woes. Bullion prices fell as low as to $1,118.50/oz yesterday. US gold futures for April month delivery slipped 1 percent to $1,124/oz. The dollar recovered its earlier losses against basket of six major currencies. The dollar index closed unchanged at 80.432. The MSCI world index for stocks posted 3.27 percent gains yesterday. Crude oil prices rose 0.45 percent to $81.87/barrel. SPDR Gold holdings remained unchanged at 1116.12 MT as on Mar 8. MCX gold futures for immediate delivery fluctuated between Rs. 16,681 and Rs. 16,893/10 gm before shrinking 1 percent down to Rs. 16,739/10 gm. Rupee appreciation notably kept domestic gold prices subdued. Indian rupee gained as much as to 45.3838 and finally closed at 45.5325, an appreciation of 0.18 percent. Outlook Gold steadies above $1,120/oz after yesterday’s 1 percent drop. The dollar index is little changed while Japanese Yen is substantially up against the dollar due to profit repatriation before the fiscal year ending. Most Asian stocks fell. Bullion markets may trade subdued initially, taking cues from equities. Later, some bargain buying can be seen at dips. MCX gold futures may open flat. There will be momentary triggers missing from the markets on lack of any major economic data scheduled for the day.

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