Asian gold under pressure

Gold came under pressure in Asia today with the dollar trading higher ahead of the ECB and BOE rate decisions. The domestic silver futures plunged below Rs 55000 today and gold slipped near Rs 22500 levels as the US dollar surged against the single currency.

The Euro fell heavily on profit taking ahead of today’s ECB rate announcement. No interest rate hike is expected today and focus turns to the ECB President Jean-Claude Trichet’s speech at 12:30GMT.

Investors expect that Trichet will sound hawkish and they are waiting to see if the phrase “strong vigilance” will be mentioned fueling speculation for further rate hikes. Also concern for Greece Debt will continue to dominate headlines.

An ounce of gold on the COMEX division of the New York Mercantile Exchange is trading down $2 at $ 1537 per ounce. MCX August gold is trading up Rs 5 at Rs 22528 per 10 grams. The traders may sell the counter at CMP with the target of Rs 22470 and stop loss of Rs 22545 levels.-   CommoditiesOnline

Posted by VBN on Jun 10 2011. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry