Gold Extends Down movement Ahead Of Fed Meet 19 Mar 2014 Gold tumbled for the third day as Ukraine crises eased amid recovery in US dollar. Meanwhile investors are looking for the outcome of the Federal Reserve policy meeting scheduled later today. Asian indices were settled mixed in cautious trade on Wednesday, as market players prepared for the outcome of the Federal Reserves policy meeting and news on the fate of its bond buying program. Hong Kongs Hang Seng Index closed down 0.1%, Chinas Shanghai Composite Index inched down 0.17%, Australias ASX/200 Index closed 0.21% higher, while Japans Nikkei 225 Index ended up 0.36%. The European stocks recovers from opening lows on Wednesday, as investors remained cautious ahead of the Federal Reserves monthly policy statement, expected later in the day, while markets continued to monitor developments between Russia and Ukraine. Meanwhile, the US Stock futures were largely flat in early trade on Wednesday, as investors took to the sidelines ahead of a policy announcement from the Federal Open Market Committee and a news conference from Chairwoman Janet Yellen due later. The U.K.s unemployment rate held steady in the three months to January, while earnings grew at the strongest rate in over a year. The unemployment rate was 7.2% in the three months to January, unchanged from the three months to December. Demand for safe haven assets weakened on Tuesday after Russian President Vladimir Putin said that Russia isnt seeking a partition of Ukraine, signaling that Russias moves in Ukraine would be limited. The comments came during a speech to a joint session of parliament in Moscow, a day after the president recognized the results of Sundays referendum in Crimea, which saw a majority of voters chose to split from Ukraine. Uncertainty over the situation in Ukraine has weighed on global sentiment over the past few weeks and boosted demand for the precious metal. The Fed will release a policy statement and updated economic forecasts at GMT 18 and Yellen will hold a news conference at the end of the deliberations at GMT 18:30. It will be the first news conference for Yellen as new Chairwoman. Market expects for a further reduction in its monthly bond buying program to $55 billion from the current $65 billion. The euro eased from the high against the greenback on Wednesday, the currency quotes at $1.3922, down 0.08% over Tuesdays close. The US dollar index edged up from the low with the index quotes at 79.57, up 0.06 over last close. The Comex gold April delivery quotes at $1,345.90, down $13.10 a troy ounce and the May silver quotes at $20.778, down $0.084 a troy ounce. Local gold fell for the third day following the international markets amid strong local currency against the US dollar. The MCX Gold April delivery quotes at Rs 30,099, down Rs 106 per 10 grams. The MCX Silver March delivery quotes at Rs 45,685, down Rs 155 per 1 kg. Indian rupee surged on Wednesday against the US dollar with the currency quotes at Rs 60.95 per one US dollar, down 0.41% over last close. Gold importers are employing bizarre methods to smuggle gold into India. To tackle a widening trade deficit, Asias third-largest economy rolled out measures to discourage gold buying, moves that have flooded the market with smuggled gold. Three upward revisions to the import duties on gold in 2013, to a record 10%, and restrictions tying purchases to exports, have resulted in an almost 60% drop in shipments in the six months to December 2013.While official imports in 2013 were pegged at 750 tonnes, an additional 200 tonnes was believed to have been smuggled into the country, the World Gold Council has estimated.
Posted on: Wed, 19 Mar 2014 12:18:27 +0000