Precious Metals Preview: Gold Corrects But Weak Equities Offer Support

Gold turned lower yesterday, easing from a six week high as gains in Asian and European equities weighed on the metal. However, a slide in US markets supported the commodity. US stocks flipped back after Mondays mammoth gains as tech stocks led a deep correction. The NASDAQ crashed nearly 3%. COMEX Gold futures are currently trading at $ 1345 per ounce, up 0.26% on the day. MCX Gold futures are likely to see some buying on these cues. The local futures closed at Rs 30700 per 10 grams, down 0.60% on the day.

Economic data was weak too. Consumer confidence in the US unexpectedly deteriorated in the month of March, according to a report released by the Conference Board on Tuesday. The Conference Board said its consumer confidence index dipped to 127.7 in March from a downwardly revised 130.0 in February. Eurozone economic confidence index fell for the third consecutive month in March to 112.6 from 114.2 in February, survey data from European Commission showed. The expected score was 113.3. The deterioration of Eurozone sentiment resulted from drops in industry, services and retail trade.