Gold is quoting just above $1880 per ounce in Asia today. The metal rose sharply in overnight floor trades in New York as the Euro continued to ride high and risky appetite continued to support equities and commodities.
Euro's gains came on the back of a stronger-than-expected jump in the Ifo gauge of German business confidence. The currency sidelined reports stating that 17-nation euro-zone economy will suffer a modest recession this year despite recent signs of stabilization, particularly in financial markets.
However, the metal is expected to face some selling pressure at the present levels, which are the highest in three months for the commodity. There are expectations that the Indian demand might not be very strong this year and the latest jump in cash prices towards Rs 29000 mark are likely to weigh on the overall sentiments in global and local bullion markets.
The MCX Gold futures for April ended at Rs 28913, up Rs 267 per 10 grams, extending a phenomenal week. The counter tested highs of Rs 28944 per 10 grams during the course of the session.