Precious Metals Preview: Gold Approches $1350 As Recovery Extends

Gold launched an impressive recovery yesterday and edged up for a fourth session today as a recovery from two week lows continued for the yellow metal. Weakness in US dollar and firming oil prices and an uptick in US inflation seem to be acting supportive for the commodity. However, recent price action was been wobbly and speculative demand has not been able to support the commodity on rallies. The metal is currently trading at $ 1348 per ounce, up marginally on the day. MCX Gold should see a steady open following this after ending at Rs 30900 in last session.

Producer prices in the US increased by more than expected in the month of March, according to a report released by the Labor Department on Tuesday. The Labor Department said its producer price index rose by 0.3% in March after edging up by 0.2% in February. Excluding food and energy prices, core producer prices also increased by 0.3% in March after rising by 0.2% in the previous month. Core prices had been expected to rise by 0.2%.