MCX Gold News

MCX Gold futures are quoting in a flat manner given the recent wave of correction in the world prices amid a mixed undertone in the Asian equities though there were traces of fresh buying taking place as prices bottomed from a seven week low of near $1700 per ounce yesterday. The market men are likely to increase their long exposure to the yellow metal after the near $100 correction seen prices during the current month. The COMEX Gold futures for December 2012 are quoting at $1708.60, up $7 per ounce on the day.

The Federal Reserve said yesterday that it would continue its economic stimulus campaign, aimed at reducing unemployment, amid fresh evidence of a housing recovery that could help to bolster those efforts. The Fed noted that consumer spending, including spending on housing, has strengthened, but it said that it remained convinced that its efforts were necessary to bolster an inconsistent and lackluster recovery. However, it kept the door open for further actions on the QE front, saying, “Without further policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market condition”.

On the economic front, sales of new single-family homes in the US rose 5.7% in September to a seasonally adjusted annual rate of 389,000, the highest pace since April 2010, when the first-time homebuyer tax credit was initially due to expire. The US markets dropped marginally, extending its recent downward trajectory and kept overall momentum in risky assets lax yesterday.

The Asian trades have witnessed quite movement in equities though Gold has gained from its recent lows. The yellow metal is off its lows near $1700 and looks likely to gain further though a positive undercurrent in US dollar could keep the gains limited. The US dollar is quoting at 1.2989 against the Euro after rising to its nine days high yesterday. The US GDP data is on tap tomorrow and today's weekly jobless claims and durable goods data as well as regional manufacturing indices could also cause some volatility. MCX Gold futures for December are trading at Rs 30864, up Rs 19 per 10 grams on the day. The breach of Rs 31000 mark could keep buyers aside in near term though the momentum is looking up in intraday moves today.

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