Saturday, July 25, 2009

Gold Continues To Fall Over As Dollar Increase Losses - July 25, 2009

Gold futures continued to tumbled in the mid day London trades today as the US dollar started minimizing the losses against the single currency. August gold futures are expected to open floor trading in New York around $2 an ounce lower Friday, based on electronic activity ahead of the pit session at the Comex division of the New York Mercantile Exchange. In other markets that have the potential to impact metals in the short term, the euro is up to $1.4246 from $1.4203 late Thursday afternoon.

In screen trading ahead of the pit open, the September S&P 500 futures are up 1.90 points to 970.80.

The lone U.S. economic report on the calendar for Friday is the University of Michigan consumer-sentiment index at 9:55 a.m. EDT (1355 GMT).

An ounce of gold on the COMEX division of the New York Mercantile Exchange is down $ 2.6 at $ 952.2 per ounce. The $954 levels is a very crucial level for gold today.

Comex gold warehouse stocks were up 214,217 ounces at 9,136,535 ounces Thursday, while silver stocks were down 117,180 ounce

The data released so far today from Europe, that the two closely watched business confidence surveys rose more than forecast in July, while U.K. GDP contracted 5.6% annually in the second quarter.

The euro rallied against the British pound and also rose vs. the U.S. dollar on the news. The University of Michigan's consumer confidence gauge is due for release

GDP shrank by 0.8% in the second quarter, the Office for National Statistics said, in a preliminary estimate.

Compared to the same period last year, output fell by 5.6% -- the largest annual decline since current records began in 1955, the ONS said. British pound fell immediately after the data came in, pound is down 0.6% to 1.6415 per US dollar.

MCX upfront month contract is down Rs 30 at Rs 14890 per 10 grams. The counter stayed below the 14925 levels mentioned in the morning update. It may find support near Rs 14865 and 14800 levels.

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