Gold slipped yet again today, witnessing follow up selling as the Euro slipped and a break under EMA 100 on daily charts continued to hurt sentiments for the shiny metal. The European Central Bank left its key lending rate unchanged today, beliling a flicker of hope that the bank could cut the borrowing costs after the dismal manufacturing data from the Eurozone yesterday. Markets in Europe are still quoting up, looking ahead to ECB President Mario Draghi's news conference for an assessment of the euro area economy. Euro is lingering around 1.3100 levels right now, consolidating after the ECB interest rate decision.
The currency was sent down yesterday after final release of the European manufacturing PMI data, which showed a decline to 45.9, well below the 50 no-change level, and down sharply from 47.7 in March could prompt the ECB to cut its benchmark interest rates. Gold slipped under $1650 per ounce in last session on the Comex division of the New York Mercantile Exchange after a disappointing US private sector jobs print troubled investors, and cast doubt on the strength of Friday's more closely-watched nonfarm payrolls report.
The current drop in Gold could extend further today evenings as investor's gear up for the all-important US non-farm payrolls data due tomorrow. The commodity is lingering at $1646.20, down $7.80 per ounce on the day. MCX Gold futures failed to hold on above Rs 29200 in intraday moves but then witnessed a pattern similar to yesterday, surging in evening moves on weak rupee. The commodity is quoting at Rs 29232, up Rs 39 per 10 grams on the day. Watch out for further losses only if prices break under 29200 in evening trades.
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