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GOLD CURRENT TRADE
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BGT 0.20 Standard Lot Gold at 1210.46 stop 1180.35
GOLD CURRENT TRADE
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BGT 0.20 Standard Lot Gold at 1210.46 stop 1180.35
on July 05/2013
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Gold prices took a nosedive on Friday after a better-than-expected U.S. jobs report cemented expectations that the Federal Reserve remains on course to taper stimulus programs in the coming months.
Stimulus measures such as the Fed's monthly USD85 billion bond-buying program weaken the dollar and send gold rising as a hedge, and talk of their dismantling has a reverse effect.
Gold has been hit especially hard in recent weeks on sentiments that ultra-loose monetary policies across the globe over the last several years are coming to an end and will exacerbate the end of a bull market spanning for over a decade.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were down 3.11% at USD1,212.95 a troy ounce in U.S. trading on Friday, up from a session low of USD1,207.25 and down from a high of USD1,249.75 a troy ounce.
Gold futures were likely to find support at USD1,180.35 a troy ounce, the low from June 28, and resistance at USD1,249.75, the earlier high.
The Bureau of Labor Statistics reported earlier the U.S. economy added 195,000 nonfarm payrolls in June, well above analysts' calls for a 165,000 increase.
May's figures was revised upwards to 195,000 jobs from 175,000, while April's figure was revised upwards to 199,000 from 149,000.
The headline unemployment rate remained unchanged at 7.6% last month, while hour earnings rose 0.4% compared to market calls for a 0.2%.
The numbers sent the dollar gaining by fueling sentiments monetary stimulus measures are on their way out by next year.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.81% at 84.63.
Elsewhere on the Comex, silver for September delivery was down 4.98% at USD18.718 a troy ounce, while copper for September delivery was down 3.55% and trading at USD3.062 a pound.
Stimulus measures such as the Fed's monthly USD85 billion bond-buying program weaken the dollar and send gold rising as a hedge, and talk of their dismantling has a reverse effect.
Gold has been hit especially hard in recent weeks on sentiments that ultra-loose monetary policies across the globe over the last several years are coming to an end and will exacerbate the end of a bull market spanning for over a decade.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were down 3.11% at USD1,212.95 a troy ounce in U.S. trading on Friday, up from a session low of USD1,207.25 and down from a high of USD1,249.75 a troy ounce.
Gold futures were likely to find support at USD1,180.35 a troy ounce, the low from June 28, and resistance at USD1,249.75, the earlier high.
The Bureau of Labor Statistics reported earlier the U.S. economy added 195,000 nonfarm payrolls in June, well above analysts' calls for a 165,000 increase.
May's figures was revised upwards to 195,000 jobs from 175,000, while April's figure was revised upwards to 199,000 from 149,000.
The headline unemployment rate remained unchanged at 7.6% last month, while hour earnings rose 0.4% compared to market calls for a 0.2%.
The numbers sent the dollar gaining by fueling sentiments monetary stimulus measures are on their way out by next year.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.81% at 84.63.
Elsewhere on the Comex, silver for September delivery was down 4.98% at USD18.718 a troy ounce, while copper for September delivery was down 3.55% and trading at USD3.062 a pound.
GOLD PRICES bounced $10 per ounce from a 1-week low of $1233 per ounce in London trade Friday, holding unchanged from last Friday's finish as financial traders awaited the latest US jobs data.
Non-Farm Payrolls were expected to show growth of 165,000 US jobs in June.
"[Gold prices are] looking towards payrolls for direction," Reuters this morning quoted ANZ Banking Group analyst Victor Thianpiriya.
"A downside surprise to the non-farm payroll numbers will result in sharp short-covering as the market remains short."
Speculative traders in gold futures last week extended record-high levels of bearish bets on the gold price.
Chinese gold buyers, in contrast, imported the second-largest volume of bullion on record in May, new data showed Friday.
Net imports of gold bullion to China through Hong Kong totaled almost 109 tonnes, the Hong Kong Census Bureau said, greater by more than one third from April.
Over the 1st five months of the year, China's net gold imports stood at twice the level of 2012.
Across in India meantime – likely to be overtaken by China this year as the world's No.1 gold consumer – "It is difficult to sell even 5 kilograms per day as the marriage season is almost over," said Chennai wholesalers MNC Bullion to Reuters on Friday.
Fighting both the typical gold summer lull of Chaturmas and new government curbs on imports of gold bullion, India's major retail chains "are aggressively promoting diamond jewellery" says the newswire, as well as expanding overseas in Singapore and Dubai.
"Gold has been the traditional form of savings among Indian households for many years," says B.Venkatesh, founder of financial advisors Navera Consulting, writing in The Hindu.
"Buying gold gives you a feeling of comfort...Gold is accepted at all times, [giving] you feeling that it is a 'safe' asset."
European stock markets meantime failed to follow Asian shares higher on Friday, while weaker Eurozone bonds recovered more of the week's drop.
Silver prices bounced with gold, but held 1.8% down for the week ahead of the Non-Farm Payrolls data.
The US Dollar rose again vs. the Euro and Sterling, touching 5 and 17-week highs respectively after the European Central Bank and Bank of England both confirmed their record-low interest rates for the foreseeable future on Thursday.
"The stronger Dollar is adding to the downward drag in metal prices," says Standard Bank's daily note.
"Even if the NFP data comes out below expectations, we would look for rallies in gold and other precious metals to fade."
Ahead of June's US Non-Farm Payrolls data, both Euro and Sterling gold prices were heading for their first weekly gain in six.
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I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
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