Crash in Comex, MCX Gold futures as Dollar index climbs
NEW YORK (Aug 2) With the US Dollar gaining strength, the futures of gold on the Comex dropped by 1.93% and was seen trading at $1285.55 in December contract. Gold on the MCX for delivery on October was seen trading at Rs.27419/ ten grams, a loss of 1.82% as of 12.38 PM IST.
The US Dollar index gained 0.03% and was at 82.45 as of 12.39 PM IST.
Profit booking by sellers is deemed as yet another reason behind then slide in futures on MCX. The commodity may trade in the range of 27400 and 27800 for the day, as per analysts.
The weakness in Indian Rupee is capping the losses in the commodity to a major extent. The Indian Rupee was seen trading at 60.831, a gain of 0.265 or 0.44% as of 12.48 PM IST.
The US Non farm pay rolls data scheduled this evening at 06:00 PM may turn out to be positive for Bullion commodities, according to Amrita Mashar, Research Analyst with Commodity Online.
Meanwhile, silver for delivery on September 13 on the Comex was seen trading at $19.265/oz, a loss of $0.359 or 1.83% as of 12.51 PM IST. Silver on India's MCX was seen trading at Rs.40718 a kilogram, a loss of 1.66% as of 12.41 PM IST.
US unemployment rate data is scheduled for 06.00 PM IST as well. The data is forecast to give a reading of 7.5% for July. June data had said that US unemployment accelerated by 7.6%.
The US Federal Reserve Quantitative Easing measures has been tethered to job market recovery in US as well as to moderate inflation. A positive job data picture would make the US Federal Reserve taper on stimulus measures, markets believe. This can have detrimental effect on gold futures with risks skewed heavily to the downside.
"One can see a continuity in the US economic recovery going forward", said V.K.Vijayakumar, Investment Strategist, Geojit BNP Paribas, India. "The macro indicators are disseminating positive sentiments," he noted.
