India Gold flat, stimulus concerns keep US Gold below $1300
Mumbai-India (Nov 12) Gold futures stayed below $1300 per troy ounce on Tuesday amid an up-tick in equity market and concerns that US Central Bank would reduce its monetary stimulus in the first half of the 2014 on improving economic conditions in the US.
Comex gold futures for December delivery on electronic platform was seen trading with a loss of $2.4 at $1278.7 per troy ounce as of 14.45 IST on Tuesday.
India gold futures for December delivery opened neutral and was seen trading flat on Tuesday amid weak international cues. Weak Indian Rupee may have supported the commodity prices to certain extent.
Analyst View
Technically, the trend in gold futures for December delivery on India's Multi Commodity Exchange (MCX) looks sideways to bullish for the day and intra-day traders are advised to buy on dips.
For intra-day, support for the commodity is seen at 29800 and below that it may test level of 29650 while resistance is seen at 30200 and 30500 levels, according to Amrita Mashar, Research Analyst at Commodity Online.
Intra-day traders may take buy position near 30000 with the stop loss of 29850 for target near 30150 and 30300, she added.
MCX gold for December delivery was seen trading with a gain of 0.04% at Rs.30154 per 10 grams as of 14.39 IST on Tuesday.
Indian Rupee was seen touching 63.84 against US Dollar, a depreciation of 0.55% as of 14.52 IST on Tuesday.
Firm equity market in Asia and the United States may have put pressure on the global commodity market on Tuesday. Asian equities recorded an upside movement on Tuesday while Japanese yen declined to a seven-week low of 99.53 per dollar, the lowest since September 20. Also, US 10-year Treasury yields climbed to their the highest level since September.
After declining by 48.5 tons in October, gold ETP holdings have continued to dwindle in early November and are down 6.36 tons. Net outflows have reached 754 tons for the year-to-date, totalling 27% of the peak holdings set at the start of the year, noted London based Barclays in an e-mailed report.
ETF Securities Ltd said that China gold imports are on track for new record. Hong Kong import data for September reveal that since the beginning of the year, China has imported a net 856 tons of gold. If the pace continues, annual imports for 2013 are set to surpass 1,100 tonnes - a new record - and puts China on track to overtake India as the largest gold consumer.
Total ex-China mine supply in 2013 is expected to be about 2,300 tons and when combined with the amount liquidated from gold ETP’s this year (approximately 700 tons) shows that about 1/3 of total (ex-China) gold supply is likely to be absorbed by Chinese import demand, ETFS report said.
