Gold attempted a pullback today after a mostly bearish movement this week. Gains were limited though as soaring equities capped upside. European stocks hit 14-month highs as upbeat German business climate data and a slew of encouraging earnings updates helped underpin sentiment. Markets also eyed the release of latest US Fed monetary policy meeting minutes. COMEX Gold is quoting at $1239 per ounce, almost unchanged on the day. MCX Gold futures are also trading flat at Rs 29334 per 10 grams after testing lows near Rs 29200 levels.
German business morale brightened unexpectedly in February as managers' assessment of their business situation reached its highest level in more than five years. The figures, published by the Ifo institute on Wednesday, were another sign that growth in the euro zone is picking up despite increased political risks. The Munich-based Ifo institute said its business climate index, based on a monthly survey of some 7,000 companies, rose to 111.0 from an upwardly revised reading of 109.9 in January.
Further on the economic front today, the Bank of Japan is unlikely to lower the rates further into negative territory, Governor Haruhiko Kuroda said Wednesday. However, the bank is ready to adjust its policy if needed to achieve its 2% price stability target, he told parliament. At the meeting in January, the BoJ had kept the -0.1% interest rate on current accounts that financial institutions maintain at the bank.
Powered by Commodity Insights