Gold Losses Darken Ahead Of Fed

Singapore (Mar 19)  Losses in gold deepened in the Asia electronic trades today with the traders awaiting the outcome of the two-day Federal Open Market Committee meeting later today.

Currently, the Fed is purchasing $65 billion Treasury bonds and mortgage debt a month, though many expect the U.S. central bank to trim that figure to $55 billion at a policy meeting on Wednesday.

Gold for April delivery slipped to as low as $1353.2 an ounce down nearly $6 in the Asia electronic hours today. Yesterday, it fell $13.90, or 1%, to settle at $1,359 an ounce on the Comex division of the New York Mercantile Exchange, the lowest price settlement since March 11.

The domestic gold futures are trading slightly lower today as India’s BSE SENSEX trimmed the gains on profit taking after recording a lifetime high of 22,040.72 points, above its previous record hit on March 10.

The Goldman Sachs upgraded Indian shares to "overweight" from "marketweight" and raised its target on India's NSE index to 7,600, citing reduced external vulnerabilities, including a narrowing current account deficit, and potential for gains ahead of elections that conclude in May.

A slight expansion in industrial output and a further cooling in stubbornly high inflation have also boosted investor sentiment, offsetting concerns about global risk factors, such as political tensions in Ukraine and China's economic slowdown, which have been weighing on stock markets elsewhere.

The Indian rupee opened higher by 13 paise at 61.06 per dollar against 61.19 Tuesday. The dollar stood near its lowest level in more than four months against a basket of currencies, ahead of Janet Yellen's inaugural policy review as the Federal Reserve's Chief.

MCX April gold futures are trading down nearly Rs 40 at Rs 30167 per 10 grams. It should hover in the range of Rs 30250-30120.

Source: IndiaInfoline