Money Market Guru — Pre Nonfarm payrolls nervousness weighed on Gold today. COMEX Gold slipped to near two month month low today, breaking under $1200 per ounce level. The metal has extended heavy losses this week, weighed down by talk of a US interest rate rise this month. Stocks remained in a tizzy amid hefty correction in global commodity prices and an event packed economic calendar.
Investors are awaiting February non-farm payrolls data today as a barometer of the US economy after Federal Reserve Chair Janet Yellen said last week the central bank was poised to lift rates this month. COMEX Gold is trading at $1198 per ounce, down half a percent on the day. MCX Gold futures fell near a low of Rs 29250 per 10 grams levels and currently trade at Rs 29315 per 10 grams, down 0.46% on the day.
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.
Global data releases are decent off late and this is also keeping a lid on Gold. 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. — Money Market Guru — Pia