Weekly Bullion Wrap Up: Profit booking chips in by week ending

MoM Team / Mumbai, Feb 04, 12:50 PM

Declines in EURO led to selling pressure in Gold during the last trading day of the week. However, Gold prices managed to end with modest gains though it eradicated most of the appreciation earned. The declines in EURO against the Dollar after unexpectedly strong US jobs report infused profit booking in the bullions.



The EURO/Dollar pair initiated the week at 1.3223 while ending at 1.3144, marking an increase of 0.6% in Dollar. The unemployment rate in US declined to a three year low of 8.3% while Nonfarm payrolls increased by 243000 in January. Payrolls rose at the fastest pace since April 2011, driving the unemployment rate down. Europe remained jostling with weak economic reports.



Eurozone retail sales declined by 0.4% in December. On a yearly basis, retail sales declined by 1.6% in December. Even after interest rate cuts by ECB inflation remained stable at 2.7%. COMEX Gold futures for April expiry ended at $ 1740.3 per ounce, up 0.28% in a week. However, Spot Gold in London showed a contrarian moves from futures. The LOCO Gold dipped to $ 1725.9 per ounce on Friday, down 0.7% in a week. The World's biggest ETF SPDR Gold holdings stood at 1277.13 tons. MCX Gold April expiry was hard hit by the rise of Rupee against the Dollar. The April futures ended at Rs 27963 per 10 grams, down 1.4% in a week.



 

Source: Capital Market