After getting closer to the recent highs of $1300 anounce, bullion bulls seems to have run out of fuel.Gold fell the most in more than a week after thedollar gained. Spot gold dropped by over $ 15 anounce to trade around $1275 an ounce in theafternoon trades in the US markets.Gold futures for December delivery fell 0.8 %to $1,281.10 at 11:46 a.m. on the Comex, heading forthe biggest drop since July 5. Prices earlier reached$1,301.10, the highest since June 21.Notably, The U.S. Comex gold futures had firmedup over the past two days rising by one percent toend at $1,290.40 on Tuesday, rising 6.4 % in thepast seven days.Factors pushing up the yellow metal were US Junemanufacturing production, which rose 0.3 %, thefastest growth rate in four months. The June CPIalso jumped more than expected to 1.8 % from 1.4% in May.
US Energy Information Administration (EIA) isscheduled to release its weekly data on crude oilstock-piles at 08.00 PM IST today. The inventorydata may affect the commodity movement tocertain extent.“For intra-day, support for MCX crude oil is seen at6250 while resistance is seen at 6300. If pricesbreak the level of 6250 then prices are expected tomove towards 6220,” said Amrita Mashar,Research Analyst at Commodity Online.MCX crude oil futures for July delivery was seentrading up by 0.74% at Rs. 6288 per barrel as of 05.13 PM IST on Wednesday.Crude oil prices in the global market edged downon Wednesday ahead of testimony from USFederal Reserve Chairman Ben Bernanke before acongressional committee which is expected to beat 07.30 PM IST today. Firm trend in US Dollar wasalso seen pressuring the commodity prices tocertain extent.
The testimony from Ben Bernanke would beclosely analysed by the investor community asthere are expectations that the Fed Chairmanwould reveal more about the tapering of QEmeasures, whether or not it would be carriedout. Hence, it is a wait-and-watch mode for thecommunity. US data on Building Permits,Housing Starts are scheduled to be released at06.00 PM IST today.Meanwhile, higher copper supply was seenpressuring the commodity prices in the globalmarket to certain extent on Wednesday.Analysts expect that higher supply followed bymarket surplus may weigh on the base metalprices in the long term.BHP Billiton Ltd., the world's third largestcopper producer reported that its productiontouched 333,200 tons in April-June (2013)period by beating the projection of 322,000tons.