Gold prices rallied on Monday, but the gains looked likely to remain limited as a stock market rally reduced demand for safe-haven precious metal. Gold held its ground above $ 1,250 an ounce on Monday after jobs data U.S. match expectations.
Whithout noticeable economic data scheduled for Monday, markets were looking investment and demand from consumers for more indications.
Spot gold was bid flat at $ 1252.85 an ounce at 0351 GMT. Has leveled after slipping a four-month high of $ 1240.61 earlier last week.
U.S. Comex Exchange, gold for August delivery was up 0.18% to $1,254.80.
MCX Gold August contract was trading at Rs 25886 up Rs 29, or 0.09 percent.
“Right now no one wants to play in large gold because they are all looking in equities” said a trader of precious metals. “With weak demand from consumers and also the status of calm Ukraine, there are many deals over there for gold.”
The benchmark BSE Sensex rose on Monday to a new all time high of 25,601.07 and NSE Nifty folded the 7600-mark for the first time, to trade at 7,646.25 in opening trade on Monday as foreign funds and retail investors were given to job creation amid a firming Asian trend.
Between Asian markets, the Hang Seng index in Hong Kong rose 0.77 percent, while Japan’s Nikkei rose 0.52 percent in early trade on Monday in response to a stunning U.S. jobs report ., an upward revision of Japanese economic growth and healthy Chinese export figures.
The U.S. Dow Jones Industrial Average rose 0.52 percent to close at record close of trade Friday.
Data by Friday showed the U.S. employment went back to its pre-recession peak in May, with strong pace of recruitment featuring confirmation of the economy has broken returning from a winter depression.
Gold is often seen as a hedge investment has a correlation with equities and negative dollar, both of which have been reinforced by the employment data in the United States.
The hedge funds and money managers decreased their bullish bets in Gold futures edge and options in the week to 03 June to its lowest level since mid-January, according to data from the Commodity Futures Trading Commission on Friday.
For latest Gold futures and spot market news with 100 Mcx Tips Commodity Advisory Company, follow us on Twitter (https://twitter.com/100mcxtips) and on Facebook at (https://www.facebook.com/100mcxtips)