Gold Eases From Two Week High As Equities Pace Up

Mumbai-India (Apr 9)  MCX Gold futures dropped in tune with the global prices as the traders eyed weakness in the global prices. The commodity has edged up in the current week following a sharp upturn on Friday. However, the prices failed to hold on near two-week highs and eased towards $1300 per ounce today. The metal quotes at $1304.40, down $4.70 per ounce on the day. MCX Gold futures are trading at Rs 28430; down Rs 47 per 10 grams on the day with 8% increase in the open interest. 

Gold jumped yesterday as pro-Russian activists in the Ukrainian city of Donetsk proclaimed independence from Kiev and vowed to hold a referendum on the issue. Russia's foreign ministry warned Tuesday that any use of force by Ukrainian authorities to dislodge the pro-Kremlin separatists who have seized control of government buildings in three cities in eastern Ukraine could plunge the country into civil war. 

However, the mood in stock markets brightened today ahead of the latest minutes of the Federal Open Market Committee meeting. The developments on the Ukraine front remain rather tepid today as stock indices in Europe are trading with decent gains. This curbed the upside for gold as the metal eased more than 10 dollars in intraday moves.