Gold Prices decline significantly on better than expected US NFP data - ICICI Bank : Treasury Research

Crude oil prices are trading firm today as positive US NFP data gave support. Meanwhile, oil prices also gained amidst reports of attacks in Sinai Peninsula that raised concerns of a supply disruption in the region. However, later it was reported that Suez Canal remained unaffected. Concerns of lower oil supply from the North Sea owing to maintenance of pipelines also aided Brent prices. The front-month WTI future is currently trading at USD 102.0/bbl compared to yesterday's close of USD 101.2/bbl while Brent is trading at USD 106.8/bbl, compared to yesterday's close of USD 105.5/bbl (18:15 IST).

Gold prices declined significantly today due to a better than expected US NFP data, which further strengthened fears of tapering of QE by the Fed. A strong Dollar also weighed on the currency. Meanwhile, holdings in the SPDR gold trust remained at yesterday's level of 964.69 tonnes. Spot gold is currently trading at USD 1225.8/oz lower than prior close of USD 1249.8/oz (18:15 IST).

Source : Equity Bulls

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