Gold witnessed a marginal rise on Friday, after a crucial decision in European Union meeting, although analysts expect the Aprl- June 2012 quarter may be the worst for the yellow metal since 2004
The increase in Friday is widely appreciated although gold is still down by 6% in the second quarter.
The yellow metal is losing it safe haven appeal, and rather considered as a risky asset, as per analysts.
Gold rose up to 1% on Friday, driven by agreement by EU leaders which agreed the recapitalization of banks which is expected to boost euro and alleviate the debt crisis. The euro jumped on comments by European Council President Herman Van Rompuy that the euro zone reaffirmed its commitment to use its bailout funds flexibly and efficiently to stabilize markets.
Spot gold hit a session high of $1,568 an ounce, and U.S. gold futures rose to an intraday peak of $1,569.10. On Thursday, spot gold settled at $1550/oz, after hitting a high of $1578; support levels are at $1538.90, 1527.75, 1507.75 while resistance levels are at 1570.05, 1590.05, 1621.20, according to HY Markets.
In India's Multi Commodity Exchange, most traded August gold contract was trading at Rs 29619.00 down by 0.11%. The gold rate touched an intraday high of Rs 29715.00 and an intraday low of Rs 29583.00 in the morning session.
Source: Commodity Online