25 Apr 2013

Gold rises in Asia on physical buying

Mcx Bullion Tips
Mcx Gold Tips @ www.mcxfreetips.com
                        Gold futures traded higher in the early part of Thursday’s Asian session, supported by a strong performance during Wednesday’s U.S. and speculation that physical buying remains robust in various parts of the world. 

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery rose 0.23% to USD1,426.95 per troy ounce in Asian trading Thursday after setting up 1.03% at USD1,423.25 a troy ounce in U.S. trading on Wednesday. 

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. 

A batch of concerning economic data points out Wednesday sent traders scurrying for safe-haven plays and gold fit the bill, for one day at least. 

In U.S. economic news, the Commerce Department said durable goods orders fell 5.7% last month following a 4.3% increase in February. Orders excluding non-defense aircraft rose 0.2% missing economists’ expectations for 0.4% increase. Shipments of core capital goods rose 0.3% in March, but the February reading was revised lower to an increase of 1.2% from an initial reading of 1.9%. 

In Europe, the Ifo index of German business climate fell to a four-month low of 104.4 in April from 106.7 in March. Analysts had expected the index to tick down to 106.2. Germany is the euro zone’s largest economy and the week Ifo index reading prompted speculation that the European Central Bank could lower interest rates at its next monetary policy meeting on May 2. 

Still, outflows at gold exchange-traded-funds continue. The SPDR Gold Shares, the world’s largest gold-backed ETF, saw holdings decrease 0.68% to 1,097.19 tons on Tuesday. 

Meanwhile, Comex silver for May delivery jumped 0.95% to USD23.050 per ounce while copper for May delivery fell 0.22% to USD3.161 per ounce.

Courtesy : Investing.com

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