MCX Gold Jumps Above Rs 29300

Mumbai-India (Feb 14)  MCX gold futures jumped above Rs 29300 per 10 grams following a swift rally in the international gold futures beyond $1300 an ounce. After ending 2013 on a tragic note, the yellow metal is up nearly 9 % or more than $100 so far this year.

MCX April gold futures are trading up nearly Rs 150 at Rs 29312 per 10 grams. The metal may face a resistance near Rs 29700-900 levels in the near term.

International gold for April delivery is trading up $6.8 at $ 1306.9 an ounce on the Comex division of the New York Mercantile Exchange. After ending 2013 on a tragic note, the metal is up nearly 9 % or more than $100 so far this year.

The soft data releases from US, the weakening US dollar and strong physical demand from China led to the swift rally in gold past the psychological $1300 an ounce mark.

The disappointing U.S. retail sales data weighed on the dollar yesterday increasing the appeal for bullion. U.S. retail sales fell 0.4% in January. Initial weekly jobless claims rose by 8,000 to 339,000, missing forecasts for a decline to 330,000.

The China Gold Association said on Feb. 10 that the nation’s consumption jumped 41% in 2013 to 1,176.4 metric tons as demand for jewelry and bars increased. The country probably overtook India as the largest consumer last year.

Federal Reserve Chairman Janet Yellen said Feb. 11 that the recovery in the U.S. labor market is “far from complete.” Gold jumped 70% from December 2008 to June 2011 as the central bank pumped more than $2 trillion into the financial system.

(Source:  India Infoline)