Gold futures recovered its yesterday’s losses in Asia trades today taking cues from strong equities and weak Japanese Yen.
In Asia, Japan’s Nikkei Stock Average led the regional gains, as it has in a string of recent sessions, rising 1% in early moves. South Korea’s Kospi gained 0.4%, but Australia’s S&P/ASX 200 fell 0.2%. The rally in Tokyo came as the yen hit a seven-month low against the U.S. dollar, and also fell sharply against the euro.
Weak Japanese trade data released 10 minutes ahead of the stock-market open helped exacerbate the yen’s fall. The Finance Ministry reported a 6.5% year-on-year drop in Japanese exports, fueled by another tumble in shipments to China, amid tensions between the two nations. Driving the drop in exports was an 11.6% fall in exports to China, Japan's top trading partner, as a territorial dispute between the two continued to stoke tensions.
December dated gold futures are trading up $1.6 at $ 1725.1 per ounce on COMEX division of New York Mercantile Exchange. The counter may face a resistance near $1735 levels today.
Euro-zone finance ministers on Wednesday failed to reach an agreement on conditions to release the next tranche of financial aid for Greece. The leaders will meet again on Monday to continue the discussions, according to reports. The euro dropped on the news, sliding to $1.2756 from around $1.2812 immediately before the announcement was made.
MCX December gold futures may open today’s session near Rs 31770 levels with resistance near Rs 31840 levels and support near Rs 31700 levels.
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