Gold Tightens Ahead Of US Holiday
Frankfurt (Jan 20) Gold futures got stuck in a tight range as the traders go sideways ahead of the Martin Luther King, Jr. Holiday in US.
Gold got a safe haven boost today on back of flurry of weak economic numbers for the world’s second largest economy. China's GDP rose 7.7% in the fourth quarter from a year ago, slower than the 7.8% it posted in the third quarter, according to data released Monday by China's National Bureau of Statistics. For the year it also posted 7.7% growth, matching 2012.
Year-on-year industrial production in December grew by 9.7%, which was less than the expectation of 9.8%. Retail sales in China rose 13.6% in December from a year earlier, in line with expectations.
Gold futures for February delivery are trading up $1.9 at $ 1253.8 an ounce on the Comex division of the New York Mercantile Exchange. Floor trading on the New York Mercantile Exchange is shut on Monday on account of Martin Luther King, Jr. Holiday.
On Friday, it gained $11.70 or 0.9% to close at $1,251.90 an ounce. On the week, the February Comex gold contract added 0.39%, the fourth consecutive weekly gain.
Gold got an additional boost from news that Deutsche Bank was withdrawing from gold and silver benchmark setting. Deutsche Bank will withdraw from gold and silver benchmark price setting, it said on Friday, as European regulators investigate suspected manipulation of precious metals prices by banks.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 7.49 tonnes to 797.05 tonnes on Friday - the first increase in a month.
Hedge funds and money managers raised their bullish bets in gold and silver futures and options for a third consecutive week, as equities' weakness prompted funds to add precious metal positions, data from the Commodity Futures Trading Commission showed on Friday.
MCX February bullion futures came down from the session high of Rs 29390 and was last seen trading at Rs 29315 per 10 grams. The counter should find support near Rs 29240-10 levels.
