Gold futures are trading mildly higher in Asia electronic trades today, but the near term trend for gold looks bearish for now. As now gold not only acts as a safe asset, it also acts as a risky asset and hence the cut in rates are disheartening gold in the short term like other assets.
Gold for August delivery is trading higher by $5 at $ 1570 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it ended lower by $10.4 or 0.7%, to end at $1,565.3 an ounce. Prices ended lower for third straight day. Last week, gold lost 1.6%. On Thursday, silver prices for September delivery ended higher by $0.14 cents or 0.5% at $27.16. Last week, silver lost 2.4%.
In the latest data releases, Singapore's economy unexpectedly contracted 1.1% in the second quarter from the preceding three months due to weakness in the manufacturing sector and as weak stock trading activity contributed to a loss of momentum for the services sector.
Also, the Bank of Korea Friday lowered it outlook for 2012 economic growth and inflation for the second time this year, citing a slowdown in the global economy and Europe's sovereign-debt crisis, fueling market expectations that the central bank will ease its monetary stance further following a surprise rate cut Thursday.
Meanwhile, China economic growth cooled to 7.6% in the second quarter from a year earlier, easing from an 8.1% expansion in the first quarter, according to data released Friday by the National Bureau of Statistics.
MCX August gold may open today's session near Rs 29280 levels with resistance near Rs 29320 levels. Yesterday, it closed lower by Rs 43 (0.14%) at Rs 29,222 per ten grams. Prices rose to a high of Rs 29,326 per 10 grams and fell to a low of Rs 29,161 per 10 grams during the day's trading.
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