Rise in US unemployment numbers to limit downside in Gold

Nirmal Bang has come out with its report on precious metals. According to the research firm, bullion prices are trading lower on COMEX today. In the evening session we have the Non- Farm Payrolls and Unemployment rate data to be released by the US. Any further rise in employment numbers may limit the downside in bullion prices.

Precious metals prices fell for a third straight session yesterday, hitting a 10-month low as unprecedented monetary stimulus from the Bank of Japan and hopes for another European Central Bank rate cut failed to stem heavy selling of bullion by funds. Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange traded fund, stood at 1206.22 tonnes by Apr 04, remains unchanged from the previous business day. Holdings in the world's largest silver backed exchange-traded fund iShares Silver Trust stood at 10677.89 tonnes by Apr 04, remains unchanged from the previous business day. Gold mine production rose to a record high in 2012, while jewellery fabrication fell 4.2 percent, mainly due to a drop in demand in India along with a fall in the rupee, metals consultancy GFMS said on Thursday. World investment in gold, which covers implied net investment, coin and bar buying, eased 2 percent to a four-year low of 1,605 tonnes. Implied net investment nearly trebled to 294 tonnes compared with 2011, although remaining well below 2009 record levels of 1,130 tonnes. Precious metals prices are trading lower on COMEX today. In the evening session we have the Non- Farm Payrolls and Unemployment rate data to be released by the US. Any further rise in employment numbers may limit the downside in bullion prices. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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