Gold prices rose yesterday, as oil prices climbed above $109 a barrel, bringing into focus the bullion’s appeal as a hedging tool against inflation.
International spot gold traded in the range $910.60 - $929.10 and last quoted at $920 ($912.90).
The Dollar remained vulnerable against major currencies, whilst gaining marginally against the Euro, pressured by downbeat employment data from the US released last week, which dampened the sentiments of investors on the greenback.
According to the latest release from US Labor Department on Friday, non-farm payrolls fell by an estimated 80,000 in March.
Also, the unemployment rate in the US rose to 5.1% in March, the highest since September 2005.
Earlier, data from the US Labor Department on Thursday had shown initial claims for unemployment benefits rose by 38,000 to 407,000 in the week ended March 29, their highest level since September 2005. The four-week average of initial claims rose by 15,750 to 374,500.
Continuing jobless claims also recorded a rise, by 97,000 to 2.94 million; the four-week average of continuing claims increased by 32,250 to 2.86 million.
Traders and investors would be awaiting the release of FOMC minutes today.
Federal Reserve Chairman Ben Bernanke, in testimony to Congress, had said that the outlook for US economic growth had worsened since January and the possibility of a recession could not be ruled out.
The Institute for Supply Management reported that its March non-manufacturing composite index moved to a reading of 49.6 from 49.3 in February and 44.6 in January.
Crude oil May in NYMEX rose as high as $109.13 and closed at $108.92, up $2.69.
Oil prices were supported by comments from OPEC Secretary General Abdullah al-Badri on Sunday, which over-ruled an immediate hike in the OPEC oil output. He also played down the chances that OPEC would hold an extraordinary meeting before its next scheduled gathering in September.
Medium term outlook (Spot Gold)
Bullish above $916; Resistances are $926, $932, $947, $954, $973, $984, $995, $1002, $1022, $1035, $1052; supports $896, $883. Further up-trend is expected above $954.60.
Last day DGCX Gold June traded in the range $914.80 – $933.60 and closed at $926.30 ($918.00).
DGCX Gold June
TECHNICAL OUTLOOK (Intra-day)
GOLD (June) - Bullish above $ 928; bearish below $ 923
MCXARUN
9994500540
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment