Gold futures decline on profit taking, focus remains on Fed

Gold futures decline on profit taking, focus remains on Fed

Bullion market players taking profits on overnight gains with continued focus on the moment of a widely expected interest rate hike by the Fed this year. Image Source: http://bit.ly/1d3dxlq

Prices of gold futures dropped in Asia earlier on Friday, market players taking profits on overnight gains with continued focus on the moment of a widely expected interest rate hike by the Fed this year. The dollar regained a little strength ahead over the next US financial reports.

On the Comex, gold futures for June delivery were down 0.40% at $1,220.30.

But the facts were overshadowed by a further report showed that producer price index United States dropped 0.4% last month and was 1.3% lower on a Y-O-Y basis, the biggest drop since 2010.

The weak inflation data reinforced expectations the Fed will keep their distance from interest rates until the economic recovery is on a stronger footing, sending the dollar lower.

On Thursday, the US Labor Department said the number of US workers filing new for unemployment benefits in the week ending May 9 fell 1000-264000, reaching just above the minimum of 15 years arrived two weeks ago, indicating the labor market recovery continues.

In Japan, the release of April CGPI showed a drop of 2.1% year on year, coinciding with the expectations and scoring the first decline in twenty-five months from -0.5% in March 2013 as the base effect of the tax increase April 2014 sales vanishes.

The Bank of Japan Governor Haruhiko Kuroda, is due to speak about monetary policy at a seminar held by the Yomiuri Shimbun in Tokyo from 12:40 to 13:40.

Late in the session, the consumer confidence survey for April is due. In March, the consumer sentiment index rose 0.8 points to a seasonally adjusted 41.7, marking the fourth straight increase and was the highest since 41.7 in December 2013.

Investors were looking for right now ahead to reports on US industrial output, manufacturing activity in the region and consumer sentiment in New York due to the end of the day, for more indications over the strength of the economy.

The dollar index, which measures the strength of the greenback against major world currencies, traded at 93.58, up 0.14% from its previous close of 93 457.

The currency opened at 63.48 per dollar and touched a 63.46, a level last seen on May 6, closing at 63.52 per dollar, up 0.22% from its previous close of 63 66.

Gold after touching the upper level of the last 3 months has now come under pressure. Also includes about 0.50 percent decline. However SPDR gold holding has at 4-month low. The MCX gold is showing drop by 0.50 per cent to Rs 27,295.

For commodity market tips, MCX live tips, Gold-Silver prices and trading market latest news & updates  with 100McxTips, follow us on Twitter @100mcxtips and Like on Facebook.  And to contact the reporter on this story email at support@100mcxtips.com or Call: +91-761-4012307

Free Mcx Commodity Tips

Advertisements

100Mcxtips an experienced commodity advisory to predict investors buying and trading trends at various market environments. For more information on commodity bullions Gold, Silver and all Indian Commodities. Kindly visit us fill an query form at 100mcxtips.com.

Posted in Commodity, MCX, Stocks Market

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Free Crude Oil Tips
Free Trial Crude Trading Tips
Contact & Visit Info
+91-761-4012307
M-Sat : 10am - 7pm
NG Trading Tips
Free Trial Commodity Tips
Disclaimer: 100McxTIps would like to remind you that the data contained in this website is not necessarily real-time nor accurate. Bulloin Futures prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore 100McxTips doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .
%d bloggers like this: