Gold Pops Positive Action Limited As US Markets Shut - July 04, 2009

Gold futures popped up in the mid London trades after trading in a tight band earlier as the action remained lull on account of closure of US markets today. COMEX Gold traded in the range of $ 934.3- 927.8 per ounce. Of late it was seen quoting at $ 933.7 up $ 2.7. In the currencies and data release, euro posted little reaction to May retail sales data. Sales volume across the 16-nation euro zone fell 0.4% in May, compared to market expectations for a 0.2% decline.

Earlier, a final reading of the June euro zone purchasing managers survey showed the composite purchasing managers index rose to 44.6 from 44.0 in May, exceeding a preliminary estimate of a rise to 44.4.

The reading still indicates a contraction in activity. A figure of less than 50 signals a majority of managers saw a drop in activity, while a figure of more than 50 signals expansion. The June reading marked the smallest decline in output since September, Markit said.

The British pound traded at $1.6334 versus the dollar, little changed from Thursday. The CIPS/Markit U.K. services PMI for June slipped to 51.6 in June from 51.7 in May, signaling that growth continued for a second month in a row but at a slower pace.

MCX counter was however under pressure due to rally in the Indian Rupee. MCX August gold was down nearly Rs 20 at Rs 14467 per 10 grams. It fell to as low as Rs 14440. It may rebound from Rs 14420 levels.

Gold Continues To Loose As Dollar Recovers - June 06, 2009

Gold futures continued to loose today, as dollar gained little ahead of the non farm pay rolls. The firm trend in the crude oil futures was hardly of any help for the bullion, which is known as a hedge against oil led inflation. The May U.S. employment report is scheduled for release.

EDT (1230 GMT). Expectations are for a loss of 525,000 non-farm jobs and for the unemployment rate to rise to 9.2% from 8.9% in April.

An ounce of Gold on Comex division of the New York Mercantile Exchange is trading at $ 978.8 down $ 5.6 per ounce. In the New York trades yesterday, gold futures recouped most of the previous session's losses on inflation-hedge buying after quarter-end profit-taking and a much stronger dollar had pulled the metal off sharply the day before.

August gold rose $16.70 to settle at $982.30 an ounce, while July silver gained 58.5 cents to settle at $15.895 an ounce.

Comex gold warehouse stocks were down 4,005 ounces at 8,721,752 ounces Thursday, while silver stocks were down 1,003,931 ounces at 119,875,304 ounces.

In other markets that have the potential to impact metals in the short term, the euro is up slightly to $1.4198 from $1.4180 late Thursday afternoon.

In screen trading ahead of the pit open, the June S&P 500 futures are up 5 points to 945.50. July crude oil is up 38 cents to $69.19 a barrel.

MCX June Gold recouped some of it its days losses today and was right now trading at Rs 14860 down Rs 2 per 10 grams. A break above 14950 may take it near 15000 levels.