Gold is holding on just above $1200 per ounce amid weak equities and steady bargain buying. Asian markets are mostly down on poor cues from US. The Dow closed lower for the fifth consecutive session, falling to its lowest closing level in over a month. COMEX Gold is trading at $1207 per ounce, up 0.48% on the day. MCX Gold futures closed around Rs 28570 per 10 grams yesterday, sliding 0.76% on the day. Expect a steady recovery in the futures today.
Meanwhile, Philadelphia-area manufacturing activity unexpectedly grew at a faster pace in the month of January, the Federal Reserve Bank of Philadelphia revealed in a report on Thursday. The Philly Fed said its index for current manufacturing activity in the region rose to 23.6 in January from a revised 19.7 in December.
US dollar index is down marginally, sliding just under 101 levels. The European Central Bank left its key interest rates unchanged for a seventh consecutive policy session and maintained its asset purchases. Eurozone inflation is being driven largely by energy costs and the recent pick up in momentum is unlikely to sustain, European Central Bank President Mario Draghi said after the decision.
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