Weekly Gold Wrap: Prices Ease From Seven-Week Highs

Gold rose initially during the week but fell from two-month highs of $1760 per ounce following losses in the euro a broad setback in risky assets, as uncertainty over negotiations on a bailout package for Greece triggered a wave of profit selling.

The commodity started the week in style, extending the break above $1700 as the US. Federal Reserve’s outlook for near-zero interest rates for a longer time hurt the sentiments. Silver also rose to a four month high before slipping in tune with the risky assets. The yellow metal seems to be in a good mood to extend the gains if $1700 per ounce levels manage to hold up. The commodity has had a very good time in last few weeks, rising just like a risky asset though the gains have ensured that the losses in end December 2011 are wiped out in totality. MCX Gold futures for April soared above Rs. 28000 per 10-gram levels before easing out. The counter tested highs above Rs. 28500 before easing out though Rs. 28k managed to hold on. The downside was cushioned by moderation in the Indian rupee, which tested lows near 50 per US dollar.