MUMBAI (Commodity Online): Gold futures are just a stone's throw distance from the psychological $1600 mark, as the grief in markets kept the safe haven demand intact.
Gold punched new highs as the persistent concerns over the Europe's sovereign-debt crisis will spread beyond Greece and also as the Moody's Investors Service placed the US credit rating on review for a downgrade boosting safe haven demand. The fears over rising inflation which was enhanced further when Bernanke said that further stimulus measures are possible to help jump-start the U.S. economy.
More clarity on the state of the U.S. economy was due this week with a slew of housing indicators and jobless claims data. The impasse in U.S. debt ceiling talks also added to gold's appeal, as the Aug. 2 deadline for Congress to pass legislation to prevent a default loomed.
COMEX benchmark Gold contract is up $1597 hitting a high of $1599.20 earlier today. The World Gold Council (WGC) said in its latest report that gold prices may retreat to $1,450 a troy ounce in the next three months because of the risk of a major sell-off of bullion when the economic backdrop for investment sours. Though the gold prices are destined to break above $1600 this year, a short term price retrace is expected in the near term.
MCX August gold also broke above the RS 23000 levels and is trading up over Rs 70 at Rs 23144 per 10 grams. It may face resistance around current levels today.
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