U.S. gold futures fell toward $920 an ounce yesterday as tumbling crude oil prices reinforced the view that inflation was nowhere imminent, weighing on bullion's appeal as a store of value.
U.S. crude oil futures ended lower for the fourth day in a row on Monday as economic concerns reflected in dismal jobs data, tepid demand and rising fuel inventories pressured the oil markets. Oil prices fell to a five-week low around $64 a barrel on doubts over a prompt recovery of the global economy, hurting gold's inflation hedge appeal.
India's gold imports in June were likely around 8 to 10 tonnes, down from 24 tonnes the same month a year ago - Bombay Bullion Association.
The Bombay Bullion Association said demand for gold and silver from India, the world's biggest bullion consumer, is likely to be pressured further this year by an increase in import duty in the budget for 2009/10. India's doubling of import duty on gold and silver is likely to encourage recycling of the metals locally in what could continue to keep imports subdued for the rest of this year also affected the bullion movements .
At the same time, the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings stood at 1,120.19 tonnes as of July 6, down 0.36 tonnes or 0.03 percent from the previous business day.
Holdings in the trust, which issues securities backed by physical stocks of gold, have declined in the past few weeks as growing optimism about the global economy sapped investors' appetite for bullion as a safe-haven asset.
Weekly Outlook (DG. Aug.)
Supports are $920, 912 and 900 Resistances are 948, 965 and 986
Last day DGCX Gold Aug Traded in the range $931.40-$920.60 and closed at $ 923.90
TECHNICAL OUTLOOK (Intra-day)
GOLD (Aug) - Bullish above $ 927 bearish below $920
MCXARUN
9994500540
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