Gold futures are trading higher in early European session today on high risk aversion in the markets raising safe haven appeal for the metal. However the metal may move down as oil is down more than 2% and Dollar is also trading higher.
The dollar's gain included a rebound against the Japanese yen, with the greenback returning above the ¥78 level — despite heightened investor risk-aversion and steep losses for Japanese equities — amid caution Tokyo may intervene against the yen's appreciation. The dollar fetched ¥78.168 early Monday afternoon in Tokyo after briefly trading below the ¥78 mark earlier in the day.
The ICE dollar index, which measures the greenback's performance against six major global currencies, climbed to 82.946 from 82.878 in New York late on Friday.
Dow Jones Industrial Average futures slid 64 points, or 0.5%, to 12,038, while Standard & Poor's 500 Index futures dropped 6.70 points, or 0.5%, to 1,267.20 in late Tokyo trading hours.
Asian stock markets were also awash with red ink, with Hong Kong's Hang Seng Index dropping 2.4% to erase all gains accumulated earlier in 2012, while the broader Topix Index in Tokyo slid 1.9% for its lowest finish in more than two decades.
Crude-oil futures stumbled below $82 a barrel in electronic trading Monday, finding little respite as disappointing U.S. jobs data combined with mounting worries over the euro-zone and slowing growth in China to sap investor confidence.
Gold for August delivery is up $1 to $1,622 an ounce in electronic trading on the Comex division of the New York Mercantile Exchange.
MCX August gold futures are trading down by over Rs 50 at Rs 30056 per 10 grams. The traders may sell it with the target of Rs 29990 and Rs 29940 with stop loss at Rs 30090.
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