Gold Adds To Losses Ahead Of NFP
Mumbai-India (Dec 5) Gold futures added to losses in the Asia electronic session Thursday with the focus turning in the NFP data which is expected to come strong following the upbeat private sector jobs data by ADP.
The private-sector employers in the U.S. added 215,000 jobs the Automatic Data Processing said, marking the strongest month of hiring in a year. Data stoked expectations for a strong reading from the Labor Department’s November jobs report on Friday.
Apart from nonfarm payrolls data, investors will also closely monitor the revised U.S. gross domestic product data for the third quarter and weekly jobless claims to be released later Thursday. They will also pay attention to assessments of European economies offered by the U.K. and euro-zone central banks.
COMEX February bullion futures tumbled $11.5 at $ 1235.7 per ounce in electronic session today. The metal may find support near $ 1220-1205 levels today.
MCX February gold contract tumbled more than a percent following the sharp gains in the Indian Rupee and the BSE SENSEX. The counter was recently seen trading at Rs 29305 per 10 grams, bouncing back from the low of Rs 29261.
Indian shares and the rupee were trading sharply higher today, as exit polls predicted a strong performance for the main opposition Bhartiya Janata Party in state elections held over the past few weeks.
The final results for state elections are due on Sunday. A strong poll performance by the key opposition party would boost their chances of victory in the national elections, which are expected to be held by May 2014, dealers said. Most investors and analysts perceive the opposition BJP as being more business friendly.
Also, some have been unhappy with the performance of the ruling Congress-led United Progressive Alliance. Analysts and executives say the Congress party has not done as much as it could have to build the country's infrastructure or streamline its economy during its near 10 years in power.
The Bombay Stock Exchange's S&P BSE Sensex index was 1.42% higher at 21003.07 points at IST 12.58 PM. The 30-stock index had gained as much as 2.2% in opening trade--touching its highest level since Nov. 3.
