Prices of gold futures were under heavy selling pressure on Tuesday after falling in the previous session, as strong earnings in global stock markets lowered demand for the yellow metal amid recent jobs data from United States They boosted the prospects of a rise in interest rates early by the Fed.
Gold for August delivery on the Comex Exchange fell by as much as 1.1% to hit a session low of $1,342.50 a troy ounce.
Spot gold prices changed at $1,354.60 per ounc. It fell 0.8 percent on Monday, its biggest decline in nearly two weeks, to close at $1,354.85.
The world stocks jumped once again on Tuesday, as prospects of further monetary stimulus from the Bank of Japan combined with relief from political unrest in Britain increased appetite for for higher risk assets.
Asian stock markets rose to a 2-1 / 2 months, Japan’s Nikkei jumping 2.5% as investors bet the country’s government can inject $ 100 billion fiscal expenditures to stimulate the economy.
Meanwhile, European shares were higher, with Germany’s DAX up nearly 2%, as political uncertainty in the UK eased with the imminent appointment of Interior Minister Theresa May, as UK Prime Minister.
Elsewhere, markets US stock open up higher, with the S & P 500 and Dow hit new intraday record highs, while the Nasdaq traded at an all time high level of the year so far.
The S&P BSE Sensex ended up 181 points at 27,808 and the Nifty50 settled 53 points higher at 8,521. The benchmark index had ended at 8,526 on August 10, 2015.
A mix of one U.S. dollars weakest, along with a return of Asian demand should continue to support gold prices in the second half of 2016, analysts said in a note.
The gold miners expanded the book global coverage by additional 50 tonnes in the first quarter after hedging on net base for a second consecutive year in 2015, an industry report on Monday showed.
At the Multi Commodity Exchange, gold for delivery in August eased Rs 46, or 0.15 per cent, to Rs 31,532 per 10 gram in futures trade today as participants cut down their bets.
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