Precious metal rally continues on weakening emerging markets currencies that has led to withdrawal of funds from equity market and investment in precious metals. Gold gained by 7.5% after falling to the year low of $1181 on December 31st.
Stock indices of major economies tumbled on weak economic results of China during this month that is a large trading partner of many developed and developing countries. Physical demand at China, world largest Gold consumer, has been increasing since the beginning of this month.
Today U.S. New Home Sales data will be release at 12:00 GMT. Positive data may strengthen dollar against major currencies of the world which is a negative sign for bullion. Fed meeting will begin tomorow and the statement will be released on 30th January early morning (IN Time). During the week ahead data of Core Durable Goods, Consumer Confidence and GDP will remain in focus. We may see precious metals under pressure in this week.
At international markets the metal is flat trading at $1269.24 with the high of $1278.57 at 1033GMT.In other precious metals Silver is down by 0.06% at 19.93 while Platinum and Palladium gained by 0.66% and 0.14% respectively.