India Gold futures extended the previous week’s gains and increased 0.1% week on week tracking international prices.
Spot gold prices also gained 0.1% week on week. Safe haven demand for the precious metal was boosted by geopolitical tensions in Ukraine and softer dollar.
The metal touched a high of $1,354.8/ounce on March 3, 2014, the most since October 30, 2013 on the rising tensions between Russia and Ukraine.
The holdings in the SPDR gold trust increased by 1.5 tons during the week, an increase of 0.2% thus supporting an upside in the metal prices.
However, favorable jobs data from the US thereon reducing the pressure on the Fed to slow the pace of the monetary easing weighed on the international prices during the last day of the week.
The US employers 175,000 workers in February, more than the projections as compared to 129,000 additions in the previous month.
Unemployment rose to 6.7% in February from 6.6% in January, labour department figures showed.
Appreciation in the Indian rupee restricted some of the gains in the domestic prices.
Steep fall in the country’s current account deficit (CAD) have raised expectations on the reduction in the import duty on gold.
CAD narrowed to $4.2 billion or 0.9% of GDP for October through December 2013 from $31.9 billion or 6.5% of GDP on year.
Indian Silver futures continued to decline this week also and fell 0.3%, tracking spot silver prices.
Indian Gold futures likely to trade lower due to less demand on the back of fewer auspicious days ahead of Holi festival.
Domestic demand may reduce due to impact of the election code of conduct in which people are not allowed to carry more than Rs 50,000 in cash without proper documentation.
MCX Gold April futures are likely find resistance at Rs. 30,280-30,660/ 10 grams and support may be seen at Rs. 29,900-29,500/10 grams in the coming week.
MCX Silver May futures are likely find resistance at Rs. 46,916/ kg and support may be seen at Rs. 44,500 Kg in the coming week.
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07.03.2014
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28.03.2014
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Feb-14
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YTD
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% Change
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% Change
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% Change
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% Change
|
Spot Gold
|
1.1
|
0.2
|
5.5
|
11.2
|
Spot Silver
|
-1.4
|
-2.8
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9.6
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4.5
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MCX Gold
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0.1
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0.7
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0.8
|
4.0
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MCX Silver
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-0.3
|
-2.3
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5.7
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1.9
|
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