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| Gold futures down amid firm equity markets | |
| Newswire18 / Mumbai March 19, 2009, 0:30 IST | |
 Gold futures in overseas markets were marginally down today on unwinding of long positions amid firm equity markets, while the fall in MCX gold futures was sharper than its overseas peers because of recovery in the rupee against the US dollar, analysts said.
Record rise in gold holding at the world’s largest exchange traded fund, SPDR GoldTrust, was also ignored as traders continued to divert their resources into riskier, but higher potential asset class like equities, they said.
SPDR’s gold holding as on Tuesday stood at all-time high of 1,069.02 tn. “Currently, the sentiment has been weakened by the rise in global share markets, which are recovering from their oversold territories,” said Mandar Pote, senior research analyst, Angel Commodities. US Dow Jones Industrial Average, and Nasdaq indices have recovered by more than 10% since last week on the back of the banking sector stabilising, while Asian and European markets also repeated a similar performance.
“Recent statements by global banking majors like Citibank, JP Morgan Chase, and Bank of America, assuring business stability in Jan-Feb this year have brought positive sentiment in share markets, fading investment appeal of the yellow metal,” Pote said, of 15,000 rupees per 10 gm.
The Indian unit was trading at 51.30 rupees per $1, up 17 paise or 0.33% from Tuesday’s close.
At 4:50PM, MCX April gold was at 15,024 rupees per 10 gm, down 121 rupees from Tuesday’s close. The contract is likely to slip below 15,000 rupees per 10 gm, and could come down to 14,860 rupees in the rest of the session today.
“Trade will watch US Fed policy statement and crude oil inventory data to be released in the US later today, to take a fresh view on currently weaker gold,” said an analyst in Mumbai.
COMEX silver contract was trading marginally up, but MCX silver was in the red following appreciation in the rupee.
At 4:55PM, COMEX May silver was at $12.72 an ounce, up 3 cents from Tuesday’s close.
MCX May silver was at 21,508 rupees per 1 kg, down 138 rupees.
MCX silver prices are expected to stay in the band of 21,260-21,650 rupees per 1 kg for the rest of the session today, the Mumbai-based analyst.
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