Hot Commodities: Weak Rupee Assists MCX Gold 28 Feb 2014 MCX Gold futures edged up on a weak Rupee today even as the global prices slipped amid persistent profit selling pressure. The metal had surged yesterday on the back of a climb in weekly US jobless claims and decline in monthly durable goods orders. The unrest in Ukraine is also supporting the metal. However, traders resorted to profit selling ahead of the weekends and pulled the metal down yet again from its four-month highs. COMEX Gold for April delivery is trading down $4 at $ 1328 an ounce right now. Rupee hovers around its one-week low of 62.10 against the US dollar. MCX Gold futures are trading at Rs 30215, up Rs 126 per 10 grams or 0.42% on the day. Gold jumped yesterday following comments from Janet Yellen. The Federal Reserve Chairwoman Congressional testimony didnt appear to offer any surprises, at least in the way of the central banks plans for its stimulus program. Yellen said it would take a “significant change” in the outlook for the Fed to pull back from its gradual reduction in monthly asset purchases.” She also said the Fed would be “attentive to signals” that indicate whether the recovery is progressing as the central bank expected. Gold has been largely supported this week, consolidating around its four-month highs. Data from the Commodities Futures Trading Commission released last Friday showed that hedge funds and money managers increased their bullish bets in gold futures in the week ending February 18. Net longs totaled 90,942 contracts, compared to net longs of 67,291 in the preceding week Also supporting the yellow metals prices was the fall in the China home prices. Home prices in major Chinese cities rose 9.6% in January, short of Decembers 9.9% growth. Growth fell for the first time in 14 months in January, which fuelled already growing fears that the worlds second largest economy is slowing as the government tries to address bad loans and weak lending institutions.
Posted on: Fri, 28 Feb 2014 10:17:51 +0000
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