Comex gold futures for August delivery rose to a record yesterday, boosted by weaker dollar, mixed stock markets and expectations of sluggish growth in the US. Gold added more than $18, or 1.5%, to close at $1248.70/oz on Comex. That supplanted the $1245.60/oz closing record on June 8. This resulted in gold exiting from range bound trading since then.

The dollar lost nearly 0.5% against the world’s six major currencies, after reports showed that jobless claims rose unexpectedly and manufacturing activities slowed down.

The Euro gained after Spain carried out a successful bond sale which eased debt concerns.

Equities traded mixed with the benchmark MSCI world index for stocks closed marginally 0.15% up.

The SPDR Gold Trust increased its holdings by 1.82 tonnes to 1307.96 MT yesterday.

MCX gold also tracked gains in international gold futures but upside was limited due to firm rupee. Indian rupee gained more than 0.5% to 46.3150 against the dollar. MCX gold ended 0.84% higher at Rs. 18,787/10 gm.

Outlook

Gold is trading $4 down at $1245/oz on Comex’s globex trading platform, while the dollar index is also marginally down. Asian equities have turned positive after opening slightly lower on news that Japanese new Prime Minister promised to cut country’s mounting fiscal debt, the highest in the world.

Markets may lack economic cues as there are no major economic data scheduled for the day. Gold may see profit booking initially which will result in investors re-entering at lower levels and take the bullion prices to further highs. Rupee appreciation and a correction of few dollars in international gold futures suggest a lower opening in MCX gold futures.

Courtesy: Karvy Commtrade Ltd.

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