After consumer confidence data in the US printed much higher than forecast. Gold has been trading in a very thin range between $1760-1780 levels all through the week. Optimistic economic outlook and subsiding risks from the Euro zone has reduced investor’s attention on bullion.
Providing signals of a reviving US job market, new claims for unemployment benefit fell to the lowest level in four years last week and agreement for holding talks over a territorial dispute between China and Japan reduced bullion’s appeal. The dollar index slipped from its one month high while the Euro retained gains after the IMF backed giving more time to Greece and Spain to reduce their budget deficit. Meanwhile, holdings of ETF inched down for the first time in two weeks but were still close to its record high. At the same time physical activities are almost lackluster as prices are trading near multi-month highs. Demand from the world’s top consumers India and China are expected to surge in the coming months as both countries enter the peak consumption season that could boost demand in the physical market.
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