Gold futures rebound in Asia after U.S. drop

Mcx Gold Tips @ www.mcxfreetips.com

                    Gold prices rebounded in the early party of Wednesday’s Asian session after falling during Tuesday’s U.S. amid some concerning economic data points. 

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery rose 0.51% to USD1,416.05 per troy ounce in Asian trading Wednesday after settling down 0.64% at USD1,412.05 a troy ounce in U.S. trading on Tuesday. 

Gold futures were likely to test support USD1,403.55 a troy ounce, Monday's low, and resistance at USD1,438.35, Monday's high. 

Gold and other commodities were hit after an HSBC Holdings/Markit Economics purchasing managers index for China came in at a preliminary 50.5 for April, below analysts' calls for a 51.4 reading. 

Also on Tuesday, data earlier by Markit Economics revealed that Germany’s April manufacturing purchasing managers index fell to 47.9 from 49.0 in March, well below the 50 level that separates contraction from expansion. Analysts were hoping for the production barometer to remain unchanged.

Germany’s service-sector PMI, meanwhile, came in at 49.2, down from 50.9 in March and below market calls for a 51.0 reading. 

In U.S. the Commerce Department said new home sales rose 1.5% last month to a seasonally adjusted annual rate of 417,000 units following a 7.6% drop in February. Analysts expected the March reading to rise to 420,000 units. 

Still, there are signs physical demand for gold remains robust. The U.S. Mint ran out of the smallest gold coin it sells and was forced to suspend sales as a result. That coin weighs one tenth of an ounce while the most popular gold coin sold by the U.S. mint weighs a full ounce. 

Elsewhere, Comex silver for May deliver rose 0.50% to USD22.930 per ounce while copper for May delivery added 0.30% to 3.098 per ounce.
Courtesy : Investing.com