Gold Down Slightly On Profit Taking

         Gold futures are trading down slightly in the Asia electronic session today on profit taking after posting gains of nearly 2% in the US floor trading.
         Gold for June delivery is trading down $8 at $ 1379 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it rose $26.30, or 1.9%, to settle at $1,387.40 an ounce.
        On Monday it plunged $140.30, or 9.3%, to $1,361.10 an ounce. The slide marked the precious metal’s biggest one-day percentage drop since February 1983. Gold’s one-day dollar drop was the biggest since January 1980 and the second-largest in its history.
        The bulk of the selloff occurred on Monday, which marked the largest one-day loss since the 1980s and prompted an increase in the amount of money investors needed to trade gold-futures contracts. Including Friday’s loss, the metal saw a two-session drop of more than $200 an ounce, or 13%.
        U.S. economic data Tuesday showed a deceleration in consumer inflation. They also showed a jump in construction of new homes and an increase in industrial production.
        Sentiment in gold has suffered after recent cuts to price forecasts for the metal, as well as outflows from gold exchange-traded products. Last week, the investment bank lowered its average gold-price forecast for 2013 to $1,545 an ounce, a level the metal took out on Friday.
       On Tuesday, Goldman cut its short-term stop on gold to $1,400 an ounce and said recent exchange-traded-fund holdings show “acceleration in the liquidation of length, which points to a broad-based selloff extending beyond the futures markets, with potential more room to go.”
      MCX June gold futures may open today’s session near Rs 25800 levels with resistance near Rs 25900-26000 levels and support near Rs 25700 levels. [via]

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