GOLD STURDY AS WEAK JOBS OPENS
DOOR FOR MONETARY EASING
Date: 09/04/2012
Gold is trading with sturdy gains
in European trades today as the weak jobs data opened doors for the Federal
Reserve to provide more monetary support to the fragile economy.
U.S. stock market futures tumbled
in European trading hours on Monday ahead of the open of Wall Street later in
the day. Some Asian markets, including Australia and Hong Kong, and European
markets remain closed on Monday. Futures for Dow Jones Industrial Average fell
120 points, or nearly 1%, to 12,858, while the Standard & Poor's 500 fell
15.10 points, or 1%, to 1,375.10.
U.S. stock futures fell sharply on
Friday after data showed just 120,000 jobs were created in March, far below
expectations for a rise of 210,000. Pressure stayed on futures in Asian trading
hours on Monday. Wall Street trading was closed on Friday for the Easter
holiday. Data released Monday showed China's consumer prices rose more than
expected in March.
MSCI's broadest index of Asia
Pacific shares outside Japan slipped as much as 0.8 percent to near a four-week
low hit last week. Japan's Nikkei average closed down 1.5 percent, after
sliding as much as 1.6 percent to a one-month low earlier, with a firmer yen
also dampening sentiment.
US June gold is up $15 or nearly a
percent right now on hopes of monetary easing by the Fed as the jobs scenario
still looks grim in US.
Data due this week from China, the
world's second-largest economy after the United States, also include trade due
on Tuesday and first-quarter gross domestic product due on Friday. China's
economy likely grew at its slowest pace in nearly three years between January
and March at just 8.3 percent, still well above the government's full-year growth
target of 7.5 percent and pointing to a soft landing of the economy.
MCX gold is trading in a very
tight range today, but it is up nearly Rs 150 at Rs 28340 per 10 grams.
Recently, depreciation in the Indian Rupee has shielded the domestic
commodities from heavy losses. The Rupee has depreciated by hefty 1.6%. From
50.25 per US dollar the Indian Rupee tumbled to Rs 51.04 on 4th April 2012.www.goldennifty.com
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