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MTECHTIPS:- Gold Sees Dull Moves, Weak INR Supporting Local Futures

MTECHTIPS:- Gold Sees Dull Moves, Weak INR Supporting Local Futures

COMEX Gold eased slightly yesterday amid nervous trades as modest gains in European stocks capped the upside for yellow metal. Stocks carved out some gains in Europe but the overall sentiment remains stressed as the IMF has stated that global growth outlook remains tepid. Stock markets on Wall Street are closed on Monday for the US national Labor Day public holiday. The metal is trading in a dull manner today as well, lingering around $1120 per ounce mark. Gold dropped on Friday after the US nonfarm data. The pace of hiring in the United States slowed in August, but markets are contemplating that the data is not weak enough to force the Federal Reserve to reconsider plans to raise interest rates in next few weeks. However, the local Gold futures stayed supported as the Indian Rupee plummeted near its two year low yet again. The MCX Gold futures ended at Rs 26500 per 10 grams. COMEX Gold futures eased in the first week of September as profit selling pulled the metal down from its seven week highs amid persistent worries regarding an imminent interest rate hike from the US Federal Reserve. The US added 173,000 jobs last month, marking the smallest increase since March and the second smallest gain of the year. However, the pace of hiring in July and June was stronger than initially reported. The Labor Department said 245,000 new jobs were added in July instead of 215,000. June’s gain was revised up to 245,000 from 231,000. The unemployment rate also dropped to 5.1% from 5.3%, marking the lowest level since April 2008. The INR is quoting near at 66.80 per US dollar as local stocks took yet another beating yesterday. Stocks from mining and banking sector led losses as key benchmark indices edged lower in choppy trade yesterday. The Sensex provisionally settled below the psychological 25,000 mark after extending losses in late trade. The barometer index hit its lowest level in more than 15 months when it plunged 350.13 points at the day’s low of 24,851.77 in late trade. The Nifty hit its lowest level in almost 13 months when it dropped 109.15 points at the day’s low of 7,545.90 in late trade.

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