Precious Metals Weak in Risk On Trading Session

Gold futures were trading in a narrow range hugging the 1610 price level with a negative bias on exchanges today tracking the fall in international markets, where firm dollar against the euro weighed on prices.  Strong demand from China and bargain buying provided strong support to gold prices and limited any major fall. During the Asian session gold is trading at 1606.70 moving between small gains and losses. On Tuesday precious metals witnessed yet another decline, with COMEX silver prices losing the most on the day. Strong tone in global equity markets have led to investor’s preference for riskier assets.
Equities across the globe rallied, as a pick‐up in German economic sentiment index boosted hopes of economic recovery in Europe. In this respect, the ZEW survey beat expectations to hit its highest level since April 2010. Meanwhile data this morning showed that Japanese exports grew 6.4% in January, a faster pace than expected, with shipments to China swing back to growth after a recent fall‐off. Although the trade deficit hit an all-time record. The Japanese imports surged due to the cost of fuel imports, which has been necessary since the tsunami last year closed the nuclear power stations.Continue Reading...