Gold well supported by spurt in Crude Oil prices

Precious metals are back in business after their precarious previous sessions where the prices of both Gold and Silver went on to touch the 51/2 month lows. Gold prices have been well supported by rise in Crude Oil prices. Inadequate Gasoline stockpiles were creating consolidation in Crude Oil.

Gold for August delivery is at $ 2.20 up at $652.60 an ounce on the New York Mercantile Exchange. Meanwhile, July silver broke its losing streak and was quoting 0.135 cents up at $12.640 an ounce when last seen.

Gold prices were mostly sideways in today’s trades on MCX, the session started with Gold prices squeezing in the Opening session trades, whereas Silver was marginally higher. Gold is now trading at Rs 8671 per 10 grams up Rs 5. Silver July expiry is trading at Rs 17078 per 10 gms up Rs 70. Open interest in the contract is at 8548.

Gold futures closed with a nearly $6 gain on NYMEX on Thursday, with a weaker dollar and strong oil prices helping the market break a three-session losing streak that's driven prices lower by nearly 2%.Traders did some value buying in the futures leading prices to pull back from the bearish tendencies. Prices extended their gains into the electronic trading session late Thursday following a decision by the Federal Reserve to keep interest rates unchanged at 5.25%.

The Federal Reserve chose to hold its target for the key federal funds interest rates steady at 5.25%. The Fed isn't convinced that core inflation has dropped back into its target range for good, the central bank said at the end of its two-day meeting.