Gold Just A Shy Away From $1300 13-Feb-2014

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gsr-23145Gold futures are trading slightly lower today after rising near $ 1300 an ounce in the floor trading yesterday stretching its Janet Yellen led rally.

On the economic front today, Australia saw an unexpected drop in employment in January, with the Australian Bureau of Statistics reporting Thursday that the jobless rate rose to 6% from 5.8% the previous month. The number of employed persons fell by 3,700 to 11.46 million.

Gold for April delivery is trading down $4.6 at $ 1290.4 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it rose $5.20, or 0.4%, to settle at $1,295 an ounce. That was the highest close for a most-active contract since Nov. 7.

The yellow metal dipped in the Asia trading yesterday on mild profit taking after it climbed sharply overnight as investors continued to cheer Federal Reserve Chair Janet Yellen’s commitment to tapering stimulus measures.

The dollar fell against the British pound yesterday after the Bank of England raised its projections for 2014 U.K. growth. The BOE now expects U.K. growth of 3.4% this year, up from projections of 2.8% previously, and said the unemployment rate is likely to fall to its 7% threshold by spring.

BOE Governor Mark Carney said in August the central bank wouldn’t hike rates until the unemployment rate falls to at least 7%. Carney on Wednesday updated that guidance, saying the bank would also consider a broad range of indicators in addition to the jobless rate, including business surveys and the number of hours worked.

The ICE dollar index, which tracks the U.S. unit against six other currencies, rose to 80.718 from 80.634 late Tuesday.

MCX April gold futures may open today’s session near Rs 29100 levels with support around Rs 29000 levels.