Friday, 03 April 2015 18:26

Gold Little Changed Before U.S. Data Release and Rupee Depreciation

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Gold at domestic market gains as rupee depreciates by 0.39% after opening at 62.01. There was also seen little upward movement in Gold at international market.

The metal gained by Rs.90 at Multi Commodity Exchange during afternoon trading session. Gold rebounded from low of Rs.29062 and reached 29150.The commodity trading flat at 1538 India time.

Today we may see better movement in precious metals after the release of U.S. data. Today at 1330 GMT Census Bureau will release Core Retail and Retails Sales data. According to our expectations retail sales may fall near to 0% as there was seen fall in January vehicle sales by 0.2m. It was the third consecutive fall. In core retail sales frigid weather in January might play crucial role. Due to freezing cold there could be less sales of retail products except automobiles. Unemployment Claims may increase as job opening for last month was seen below expectation. Government data for nonfarm employment had also shown below expected result.

Overall negative economic release may weaken dollar and encourage bullion buyers. We may see Gold spot near to $1995/oz if bullish bets will increase.

 

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