Already trading at three month lows, Gold is expected to correct further as the traders have now started selling the precious metal. Constant decline in SPDR Gold trust is putting pressure in the metal.
Equity bourses turned negative today and US markets are expected to open lower. Gold on the other hand was gripped by selling pressure once again after getting thrashed last night.
COMEX Gold was seen marginally up by $4 at $1162 per ounce. Meanwhile, LOCO Gold was at $ 1163 per ounce. The prices tested $ 1158 as its intra day low, levels not seen since May 2010.
MCX Gold has found Wednesday's session a bit tough to handle. The benchmark contract has been sold from every rise. The most active contract was seen trading at Rs 17758 per 10 grams. Contract tested a intra day low of Rs 17705 so far. A rise towards Rs 17800 levels can be taken as a opportunity to go short in the metal.
European stocks turned negative on profit taking today, breaking a six-day upside, and trading in the U.S. index futures suggested a lower open on Wall Street Wednesday morning, as concerns surrounding economic recovery overshadowed strong corporate earnings.
IMF assured that the China growth would remain robust in coming days. This also eased tensions in the markets and induced selling in the precious metals. IMF said that Chinese economy is likely to grow strongly, although the inflation outlook appears benevolent.
In an important news, the number of unemployed jobseekers in France declined by 8,600 to 2.7 million in June, the economy ministry said in a report on Tuesday. The number of unemployed dropped 0.3% from the prior month.