Gold Silver Reports — Gold slipped a bit as about two month highs triggered some profit selling. However, the recent recovery has enthused Gold bulls and a further uptick from hereon is quite possible. Indian imports are also rebounding, helping lift the sentiments. COMEX Gold is currently down 0.26% at $1247 per ounce. MCX Gold futures backed off from highs near Rs 28950 per 10 gram levels and ended down 0.30% at Rs 28800 levels. Further losses are possible if the counter drags under Rs 28700 mark today.
Gold witnessed a sharp spurt on and hit near 2017 highs on heightened safe haven buying. A terrorist attack in London made sentiments nervous globally. Around five people, including the assailant, were killed and at least 40 others injured in the attack. COMEX Gold jumped earlier this week on slightly modest views by a barrage of talks of Fed speakers. The US central bank raised interest rates for the second time in three months last week. However, Gold found solace on ideas that Fed would be little easy on monetary policy tightening in coming months. Comments from Fed members corroborated this. Chicago Fed President Charles Evans said the central bank will wait until June to decide on the next rate hike. Minneapolis Fed President Neel Kashkari also noted that he voted against a rate hike last week because he wanted to see more inflation in the US, according to media reports.
Gold took a heavy tumble earlier this month amid strength in US equities and sound economic data releases. US non-farm payrolls rose more-than-expected last month. In a report, the US Department of Labor said non-farm payrolls rose to a seasonally adjusted 235K, from 238K in the preceding month whose figure was revised up from 227K. Global data releases are also decent off late. OECD jobless rate came in at 6.1% in January versus 6.2% in December. The Organization for Economic Co-operation and Development said the unemployment rate dropped marginally in January after two months of stability. Across the OECD area, there were 38.3 million unemployed, still about 5.7 million more than in April 2008, before the crisis.
Meanwhile, the forthcoming Goods & Service Tax (GST) will change the shape of the local bullion industry, according to a latest update from World Gold Council (WGC). India’s gold market faces some short-term headwinds. But looking ahead, these policies may deliver a stronger economy and a more transparent gold industry, underpinning gold demand, which WGC expects to be between 650-750t in 2017. | Neal Bhai Reports