Gold futures at the Multi Commodity Exchange (MCX) opened on a weak note at Rs 28,412 per 10 grams and touched a low of Rs 28,240. It closed at Rs 28,490 on Tuesday.

Mumbai spot gold traded at Rs 2,710 a gram at 11.30 am.

Asian equities are also trading with a downward bias. Euro has fallen by 0.25 per cent against the dollar. Gold is expected to continue the weak trend.

ECB meet

The European Central Bank will meet later in the day to decide on banking rates. The Euro Zone Primary Manufacturing Index numbers may not improve much, according to indications from the economic data.

However, expectations are that the German factory orders may improve marginally.

ECB may keep rates unchanged at one per cent which may not support the euro against dollar. A weaker euro is likely to keep gold prices down.

US gold spot price was at $1,643.95 a troy ounce at 11.30 am.

The monthly US non-farm data is to be released on Good Friday. The unemployment level is likely to go down reflecting an improvement in US economy. This will pull down gold prices in US.

(This article was published on April 4, 2012)
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