Gold Down Ahead Of key Events, Local Market Extends Gain On Weak INR
Singapore (Nov 20) Gold futures inched down slightly as dollar turned a tad up against the Euro ahead of the key U.S. economic data and the release of the minutes of the Federal Reserve's October meeting later in the day. Consumer price index, US MBA mortgage applications, retail sales, existing home sales and business inventories are the major economic data scheduled to release later today.
Most of Asian Stocks settled lower on Wednesday, as regional sentiment was weighed after the Organization for Economic Cooperation and Development lowered its growth forecasts, while Chinese and Hong Kong stocks extended their recent gains. Investors were cautious ahead of the release of the minutes of the Federal Reserve's most recent policy meeting later in the day.
European stocks slipped lower on Wednesday, as markets were still digesting positive comments by Federal Reserve Chairman Ben Bernanke.
The euro was steady against the dollar on Wednesday after initially rising to three-week highs when Federal Reserve Chairman Ben Bernanke reiterated the bank's commitment to highly accommodative monetary policy. The Euro quotes at $1.3530, down 0.06% and the dollar index quotes at 80.68, down 0.04%.
Fed Chairman Ben Bernanke reiterated the central bank's commitment to its highly accommodative monetary policy in comments made at the annual National Economists Club member's dinner in Washington on Tuesday. Bernanke said the Fed is likely to keep interest rates near zero until perhaps well after unemployment drops below 6.5%, the bank's threshold for increasing rates. Bernanke added that a “preponderance of data” would be needed to begin removing accommodation.
COMEX division gold futures for December delivery trades $1,270.90 a troy ounce, down $2.60 from Tuesday close. Silver December quotes at $20.365, up 0.031 from last close.
Local Gold futures jumped for the second day on weak local currency against the greenback. Indian rupee was too volatile during the week, the currency quotes at Rs 62.56, 0.29% appreciated from last close.
MCX Gold jumped for second day with December contract quotes at Rs 30,450, up Rs 137 per 10 gramsfrom last day closing rate and the Silver quotes at Rs 45,650, up Rs 207 per 1 kg.
