Gold Looks Nervous Ahead Of FOMC Minutes
Mumbai-India (Jan 8) MCX Gold futures slipped today, extending its recent correction as the global prices stayed on an edge following the losses in last session.. The yellow metal fell for the first time in five sessions yesterday on COMEX amid strong gains in the US equities and strength in US dollar. The local futures also slipped well under the 29k mark following the slide in global prices. The COMEX futures are quoting at $1226, down 3.60 dollars per ounce on the day right now. MCX Gold quotes at Rs 28750, down Rs 84 per 10 grams or 0.30% on the day with a modest jump in open interest.
US dollar is keeping a tab on the gold prices. The greenback is off its one month high against the Euro but is still lingering around 1.3600 levels as the markets wait for the minutes from the last FOMC minutes today. COMEX Gold slumped heavily in a sudden stroke on Monday evening 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 yesterday, 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.
