Gold did an exact replica of the Tuesday's trading session. The session started with a rather grim look of the yellow metal till the morning trades. The prices reinvented themselves in the mid-day trades. Worries that the global economic recession will deepen raised the metal's appeal as a safe haven. The support was provided by the losses in all the major markets today. On Tuesday, as soon as Barack Obama became the 44th president, markets again faced the heat, with Dow Jones and NASDAQ plummeting substantially.
It is rather surprising to know that Dollar momentum against the major currencies across the globe has not brought impact on the rising of Gold. The greenback which touched a new six-week low of 1.2907 versus the euro on Tuesday is now trading at 1.2896 extended its depletion from Tuesday's levels. Dollar is at 1.3744 against the pound.
COMEX Gold for February delivery is now trading at $ 859.80 per ounce up $ 4.60. MCX Gold contract for February delivery which was at Rs 13405 (intra day low) in the morning trades, before initiating the journey at Rs 13495 per 10 grams, is currently at Rs 13600 per 10 grams up Rs 105. Sustainability at higher levels is still a matter of concern for the traders. Expectations are that the rally in these two trading sessions is for short term.
In major news, German factory-gate prices continued to fall in December, signaling future declines in consumer price inflation, data from the Federal Statistics Office showed Wednesday.
German producer prices fell 1.0% from November and increased 4.3% from December 2008. Excluding energy prices, which can be extremely volatile, the producer price index sank 0.6% on the month and was up 1.5% on the year.
Iran's OPEC governor Mohammad Ali Khatibi said Wednesday that in the current global economic climate OPEC members should meet more regularly in order to evaluate the impact of their decision making. NYMEX Light Sweet Crude Oil for March delivery was trading at $ 41.67 per barrel when last seen up 83 cents.
source: Capital Market