Gold marks time as investors await stimulus outlook



Gold held steady in Asian trading on Monday as investors awaite
indications from a key US Federal Reserve meeting later this week on th
outlook for the central bank's bond buying programme.

The Fed meets on June 18-19 against a backdrop of stronger-than-expecte
data on US retail sales and the job market, with markets looking fo
clues to any tapering of its economic stimulus programme.

"The markets are a little bit fatigued at the moment," said Victo
Thianpiriya, commodities analyst at Australia and New Zealand Bankin
Group. "They are still looking for direction from the Fed meeting
That's clearly the big driver this week."

Spot gold rose 0.02 percent to $1,390.41 an ounce by 0319 GMT. Bullio
closed up about 0.5 percent for the week on Friday helped by stron
demand for coins and bars, a pullback in U.S. stocks and rising tension
in the Middle East.

US gold rose USD 2.40 to USD 1,390.

Markets have been volatile since Fed Chairman Ben Bernanke said las
month the bank could scale back its stimulus measures if the econom
improves. A cut in the Fed's USD 85 billion monthly bond purchases coul
hurt gold, which has benefitted from its role as a hedge agains

Thianpiriya said Bernanke was unlikely to deviate from what he has sai
before, as it was still too early to determine the timing of th
tapering down of the bond purchases.

Most economists expect the Fed to scale back the size of its bon
purchases by year end, and several expect reduced buying as early a
September, a Reuters poll showed.


Gold prices were supported by some buying in China, the No. 2 bullio
consumer in the world after India. Shanghai gold futures were up 0.
percent on Monday.

However, demand in Asia has cooled from peak levels seen after th
mid-April sell-off in gold. Bullion is down 17 percent for the yea
after 12 years of annual gains.

Indian purchases of gold have fallen since an import duty hike earlie
this month. The government is trying to narrow its current accoun
deficit by reducing gold imports.

ANZ's Thianpiriya said volumes to India have fallen significantly in th
last two weeks, while those to China were little changed.

Hedge funds and money managers slashed their bullish bets in gold an
silver futures and options in the week to June 11, a report by th
Commodity Futures Trading Commission showed on Friday.

Gold output in Australia, the No. 2 producer behind China, fell
percent in the first quarter on weather-related disruption to 63.
tonnes, according to the latest Gold Quarterly Review by Surbito




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safe.Gold futures prices are quoted on the commodity exchanges i
exactly the same way in which stock prices or stock futures prices ar
quoted on a daily basis in the stock markets

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