MCX Gold Stays On Slippery Course After Breaking Below 29K
Mumbai-India (Jan 7 ) MCX Gold futures corrected today, extending their yesterday's losses ahead of a barrage of important economic data ahead in the week. The local futures have slipped under the 29k mark, not holding onto its rally in the last session as global prices stabilized around $1240 per ounce mark. The yellow metal failed to witness any major activity today after a “flash crash” in the overnight trades on COMEX. The futures are quoting at $1238.60, up 60 cents per ounce on the day.
COMEX Gold slumped heavily in a sudden stroke yesterday on the Comex division of the New York Mercantile Exchange. Prices dropped by $30 an ounce on heavy volume before gathering some momentum and witnessing a quick recovery. This ensured that the yellow metal stays on a slippery course though and its recent highs around $1245 per ounce- the strongest levels in nearly three weeks mark sort of a top at least for the short term.
In a critical release, Pakistan's gold imports during the first five months of current fiscal year 2013-14 surged by a whopping 87.02% as against the same period of last year, extending the recent pattern. According to data revealed by Pakistan Bureau of Statistics (PBS), during the period under review, 3,427 kilograms of gold worth of US $139.921 million was imported as compared to the import of 1,380 kg valuing $74.815 million during July-November 2012-13, according to media reports. The soaring imports from Pakistan are feared to be leading to a flood of smuggled gold in India- the largest gold consuming country in the world.
Gold edged up last week after the precious metal tumbled 28% in 2013, the worst yearly performance since 1981 and the first annual loss since 2000. Gold futures were driven lower as expectations for the Federal Reserve to start scaling back stimulus measures weighed. Local futures pared the five sessions of winning streak on Monday, triggered by fall in the global prices and eventually ended under the critical Rs 29k mark
