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A good week for gold, despite Friday's fall

 A good week for gold, despite Friday's fall
It was a good week for gold, unlike equities, which saw a sharp slide on Friday across global markets.

Gold also saw a slight correction on Friday after hitting a two week high on Thursday. Spot gold dropped 1.5 percent to nearly $1,393 an ounce.

The week saw discouraging job data, which pinned hopes on the Federal Reserve continuing its easing programme, which pushed gold prices higher.

Domestically, in India the sharp fall in the rupee has pushed spot prices of gold higher. Gold has now gained on the back of a rise in international prices, as well as a falling rupee. With the festive season behind and Indians ushering the monsoon season, there is unlikely to be robust activity during the season.

According to a Reuters report Asian gold demand from this April to June will reach a quarterly record as bullion consumers in the region take possession of supply freed up by selling from exchange-traded funds (ETFs), the World Gold Council (WGC) said.

The precious metal is unlikely to fall anytime soon and would move in tandem with economic data from the US. Strong economic data would mean that the Fed would wind down its easing programme, which would push gold prices lower.

Read more about: gold wgc
Story first published: Saturday, June 1, 2013, 11:05 [IST]
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