MCX gold opened with the high of Rs.28398 that is Rs.19 above yesterday close but the commodity fell by near to 0.07% and made the low of Rs.28331.
Yesterday at US market Gold dropped to $1192.86/oz as investors are withdrawing their investment. Positive U.S. economic data and Fed tapering has strongly supported stock markets. Yesterday Dow, Nasdaq and S&P 500 gained by 0.46% 1.08% and 0.53% respectively. Europe markets were also trading positive on an average of 0.80% and presently Asian markets are up by on an average of 0.30%.
Gold remained the third worst performer among all commodities after Corn and Silver in the list of top worst performers of the year . The commodity fell by 27.59% on annual basis and its volatility was noted at 22.89.Gold ETF holding fell below the five year average at 57.1mt while on the other side DXY index is above the 5 year average at 80.50.
Today US Durable Goods Orders, Core Durable Goods Orders and New Home Sales data will be released. Durable goods orders are expected to improve as automobile sales increased. Manufacturing data also come at 56.4, highest after May, 2011. This is likely to support durable and core durable goods orders. New home sales may drop for correction as October home sales was more than expectations.
Overall positive data of US may attract investment in stock market and strengthen USD that in turn will weaken Gold demand. Even after tapering INR appreciated that may keep downside pressure on Gold at MCX. We may see further fall in the New Year if Fed trim the bond buying pace more than $10b.