Gold prices are expected to move higher for the day as safe haven buying of Gold and upcoming poor US data expectations can push the prices higher. Gold
Gold demand fell 15 percent in 2013 as huge outflows from ETF’s outweighed record consumer demand, but disinvestment has been slowing down this year pointing towards recovery, the World Gold Council said on Tuesday. Massive liquidation of bullion-backed exchange-traded funds returned 881 tons of gold to the market last year, part of a 51 percent slump in investment demand to 773.3 tons. China overtook India as the world’s biggest gold consumer, with overall demand of 1,065.8 tonnes, largely driven by a 29 percent rise in Chinese jewelry demand and a 38 percent increase in coin and bar buying.
US Dollar Index decreased by 0.04 percent in yesterday’s trading session on the back of weak economic data from US. Further, subdue trading due to holiday in US kept dollar under pressure. However, sharp downside in the dollar was cushioned on the back of expectation among the investors that the US Federal Reserve may continue to scale back its stimulus program. The US dollar is trading at 80.01 down by 5 points this morning.
Copper eased by 2 points to trade at 3.284 trading near recent highs after its climb earlier this week on demand from China. Copper prices in US moved higher for the day on Tuesday as markets reopened after a long weekend. China’s central bank drained funds from the market on Tuesday as it strengthened its money management strategy after unexpectedly strong credit growth in January put downward pressure on rates. Traders can expect Copper prices to remain in range to higher for the day as tighter monetary policy by China can help supporting the copper prices. Other base metals would follow copper prices for the day, except for aluminum