Gold Rebounds From Three Week Lows

MUMBAI-INDIA (Aug 8) MCX Gold futures recovered from their lows as COMEX futures carved out some gains from three-week lows. Dollar weakness and a mostly supportive movement in global equities pushed up the yellow metal today. However, gains in Indian Rupee ensured that the rise in local futures is tepid. COMEX Gold is quoting at $1291, up $5.70 per ounce on the day. Prices had hit a high around $1396 per ounce in intraday moves. 

Meanwhile, global equities turned in a good performance today, after the Impressive show from Chinese trade figures. Chinese exports rose 5.1% from a year earlier, rebounding after from June's 3.1% fall, the customs agency said. However, the medium-term economic outlook remains volatile with a broader range of outcomes now possible. Chinese economic growth has decelerated so far this year and is unlikely to recover significantly in the second half, noted global mining giant Rio Tinto.

India's gold demand has remained moderate over last few weeks after a spike in April when prices slumped towards Rs 25000 per 10 grams in the major local markets. World Gold Council, is upbeat about the demand for jewellery picking up momentum in the coming quarters in the country and even projected demand for gold touching 865-965 tonnes in 2013, thus exceeding 2012's record.

Rupee is quoting around 60.81 per dollar mark after falling near 62 levels earlier in the week. MCX Gold swayed to these moves and currently trade at Rs 27644, down Rs 33 per 10 grams on the day. Prices have dropped from highs above Rs 27800 levels.