Gold Updates

MCX Gold futures slipped further today after topping out above Rs 31900 in the last session as the global prices are witnessing a correction after recent gains. The local prices edged higher in the early moves on the Muhurat trading on Diwali but gave up once the initial burst was over. The COMEX Gold futures topped out at near $1740 per ounce in the last week-their three week highs and dropped to $1720 per ounce. The US dollar continues to appreciate and tested its fresh two month highs against the Euro today, breaking under 1.2700 levels. COMEX Gold is quoting at $1720 down $11 per ounce on the day.
German economic sentiment declined unexpectedly in November, hitting the lowest level in two months, industry data showed today. The ZEW Centre for Economic Research said today that its index of German economic sentiment deteriorated by 4.2 points to minus 15.7 in November from October’s reading of minus 11.5. Meanwhile, economic sentiment in the euro zone remained in negative territory for the seventh consecutive month in November. The index of euro zone economic sentiment declined by 1.2 points to minus 2.6 from a reading of minus 1.4 in October. Equities drooped heavily in Europe and the DOW is also down around 30 points right now.
The Euro has been on a losing track since the middle of last month and has accelerated its weakening spree in the last few days on persistent worries about Greece and an overall specter of gloom in the Eurozone economy. Investors were jittery after a meeting of euro zone finance ministers on Monday ended without any final decision on whether to release an urgently needed EUR31.5 billion bailout installment for Greece.
The European equities are down nearly 1% and Gold seems to be back to its usual course- falling when the risky assets are in pressure. The local futures market went up after opening above Rs 31800 levels but dropped soon amid heavy selling pressure. The MCX December futures had tested highs of Rs 31937 per 10 grams yesterday and closed at Rs 31778, up Rs 137 or 0.43% on the day. Prices are up nearly Rs 1000 in the current month so far. Prices corrected further today and the counter closed at Rs 31678, down Rs 100 per 10 grams on the day.

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