Gold futures recovered in Asia morning trades today as bargain hunting emerged after it tumbled below $1635 levels yesterday. A fall below $1630 may take it to $1610 and $1570 levels.
The slump in metal came after the Fed's latest statement in which gave no hopes of more monetary easing in the short term and the US dollar continued to shoot higher. The Fed opted to keep its fed funds target rate at 0.00% to 0.25% and maintained its outlook that low rates of resource utilization and subdued inflation are likely to warrant exceptionally low levels for the fed funds rate at least through late 2014.
US Gold for April delivery are trading up $ 4 at $ 1647 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it ended lower by $51.3 or 3%, to end at $1,642.9 per ounce.
Losses in crude oil and strong US dollar pressurized the precious metal. Crude for April delivery lost $1.28, or 1.2%, to end at $105.43 a barrel on the New York Mercantile Exchange. That was oil's lowest settlement since mid February. The Dollar Index, which weighs the strength of dollar against basket of six other currencies rose by almost 0.35%.
MCX benchmark gold futures may start today's above Rs 27550 levels with resistance around Rs 27610 and RS 27690 levels. Yesterday, it closed lower by Rs 389 (1.4%) at Rs 27,443 per ten grams. Prices rose to a high of Rs 27,801 per 10 grams and fell to a low of Rs 27,402 per 10 grams during the day's trading.