Gold has been regaining its safe haven appeal from time to time in recent weeks, however, the present trend indicates a bearish trend in the near term.
Gold has stayed above $1600 despite falling slightly in early electronic trading on Wednesday with persistent worries over Spain’s debt supportive of the yellow metal.
HY Markets in an analysis pointed out Spot Gold had closed higher on short covering in Tuesday but technical suggests neutral to bearish hinting that a short-term top might be in or is near.
Gold for August delivery in New York declined 0.2 % to $1,611.20 an ounce while immediate-delivery bullion was little changed at $1,610.22 on Tuesday.. Gold gained for the third straight session on Tuesday on speculation that U.S. policy makers will announce additional stimulus measures to boost growth. Silver for July delivery was little changed at $28.925 an ounce, DGCX Academy said in a daily analysis.
US Gold futures for August was trading at $1610.80 in morning trade while at India’s Multi Commodity Exchange (MCX) gold gained 0.27% at Rs 30047 per 10 grams in morning trade as against previous close of Rs 29968.
India gold jewellery demand is showing seasonal weakness which will regain only by August. Increased import duty on gold bars and excise duty on jewellery has already dented demand for the yellow metal in April to June quarter, analysts said.
Spot Silver in US markets gained on Tuesday due to short covering but technical indicate prices to trade sideways to lower in near term, HYMarkets added. MCX Silver July has gained 0.23% at 55220 per kg on Wednesday morning trade.
Source: Commodity Online