Prices of gold futures dropped on Tuesday from a peak of seven weeks, as the US dollar driven higher, having recovered almost the entire lost ground in the slipstream of suddenly weak US jobs report on Friday. In addition, uncertainty about the timing of a rise in interest rates in the United States stayed bullion above $ 1,200 an ounce.
Shadowlands US jobs data on Friday fueled expectations that the Federal Reserve may delay an anticipated rate rise this year, boosting lure of gold shelter. Jobs in the United States were reporting the slowest growth in more than a year in March.
The growth of US services sector decelerated in March at its lowest level in three months, but the rate of new export orders rose at the highest level in over two years.
Technically, the bullion is it found support around $ 1,210 and close back above $ 1,225 will suggest a higher trend, bullion experts said.
On the Comex, gold futures for delivery in June declined $8.70, or 0.71%, to trade at $1,209.90 a troy ounce. Spot gold was nearly flat at $1,213.11 an ounce during U.S. morning hours.
The dollar index, which measures fortress the greenback against a trade-weighted basket of six major currencies, up 0.7% to trade at 97.88 early on Tuesday.
Rupee opened at 62.25 per dollar and touched a high and a low of 62.25 and 62.41, respectively, while closed at 62.26, down 0.11% from its previous close of 62.19
The Indian benchmark rupee fell while bond yields rose on Tuesday after the RBI guv Rajan left interest rates unchanged in its first bi-monthly policy of the new fiscal year.
Gold futures declined by Rs 52, or 0.19%, to trade at Rs 26,945 per 10 grams for delivery in June on the Multi Commodity Exchange as investors indulged in booking profits at prevailing levels amidst a weak trend in global markets.
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