Gold Inches Up Cautiously In Year End Trade
New York (Dec 31) Gold futures inched up slightly on the last trading day of the year 2013. Gold futures headed towards its biggest annual loss since 1981 with around 29% down over last year close. Gold extended its loosing steak as equities performed well and amid recent reports on Fed tapering plan. Trading volumes are expected to remain light as many investors already closed books before the end of the year.
The outgoing Fed Chairman finally initiated the feared taper, cutting its asset purchases by $10 billion a month starting January. The FOMC began QE3, as the program is known, in September 2012 with monthly purchases of $40 billion in mortgage bonds and added $45 billion in Treasury purchases starting in December 2012.
Asian shares edged higher on Tuesday, the last day of the year, with China on track to be Asia's worst performing market in 2013.Investors have long been concerned about high levels of debt in China, and uncertainty over the local banking system's exposure to bad debt. Asia's top performer of the year was Japan's Nikkei, which ended the year with a gain of approximately 57%, its best annual advance since 1972.
European stocks traded higher in subdued holiday trade on Tuesday, as equity markets remained supported before the year end.The German, Italian, Scandinavian and Swiss markets were all closed on Tuesday, while London, Madrid and Paris opened for a half day.
Stock futures point to a quiet open on the last trading day for 2013, with Case-Shiller home prices, a Chicago-area manufacturing survey and a consumer confidence index all on tap. Wall Street was set for a quiet finish to 2013, with stock futures flat as the market awaited the last few data points of the year on Tuesday. Case-Shiller home prices, a Chicago-area manufacturing survey and a consumer-confidence index are all on tap.
The dollar stayed mostly range-bound on the last day of 2013, inching up just slightly in thin trade Tuesday to sit not far from the levels it saw a year earlier. The Euro quotes higher at $1.3764, down 0.28% from last close.
The COMEX gold futures for February delivery trades at $1,202.10 a troy ounce, down $1.70 and Silver March delivery quotes at $19.543 a troy ounce, down 0.072 from last close.
Local Gold futures also inched up after hitting the low since October 2013, the MCX Gold February delivery quotes at Rs 28,354, down Rs 3 from last close. March Silver contract quotes at Rs 44086, down Rs 117 from last close.The local currency was weaker against the greenback. Local rupee quotes at Rs 61.79, 0.18% appreciated over the last close.
