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-MCX Gold Tests Lows Under Rs 26000 Amid Heavy Correction

MTECHTIPS:-MCX Gold Tests Lows Under Rs 26000 Amid Heavy Correction

Gold extended losses yesterday after holding steady as a break under $1120 per ounce mark triggered fresh intraday selling and dragged the counter towards $1100 per ounce mark. Traders are looking ahead to next week’s Federal Open Market Committee (FOMC)meeting and gold is unlikely to see much gains before clarity emerges on the Fed interest rate direction. The yellow metal witnessed some gains in Asia though as one month low near$1100 levels offered good buying support. MCX Gold futures tested lows under Rs 26000 per10 grams mark before ending above the 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.COMEX Gold futures eased in the first week of September as profit selling pulled the metaldown 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.

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