Gold still on the back foot: Standard Bank

“Gold is still on the back foot. With more dollar strength in the pipeline, the yellow metal is putting up little resistance,” said a Standard Bank report on Wednesday.

On MCX, the December contract for gold was trading at (14:54 IST) Rs12,188, down by about 1.5% from its day’s high of Rs12,317 on Wednesday.

MCX Gold December gold prices plunged to Rs12,307 levels and settled at Rs12,377 levels on Tuesday.

“Market is expected to come down and the next supports can be seen at Rs12,200 and then Rs12,050 levels,” said a Karvy Comtrade report on Wednesday.

The report also mentioned that the resistances can be seen at Rs12,400 and then at Rs12,436 levels. “If market sustains below Rs12,436 we may expect gold trading lower. We recommend taking short positions for the day,” it added.

The Standard Bank report also mentioned that after a steady opening just below $800 in Tokyo, gold moved gradually south as the euro weakened. At $790, some stops were triggered, and the metal quickly fell to $785, it said.

“With the dollar still on the rise, gold could remain under pressure today. Primary support is at $757, and a secondary support band at $742 - $720. Resistance is at $794, $810 and $818,” it said.

WGC, HDFC Bank tie up to extend personal loans

World Gold Council (WGC) has got-together with HDFC Bank to offer personal loans for gold buyers. The step taken is in effort to boost gold sales in India. The service is expected to be launched across the country over next few days.

HDFC will provide personal loans at an interest rate of 16%. In place of security against the loan the bank will keep back the purchased gold on behalf of the customers until the entire cost is paid back to the bank. Starting three months from the date of purchase the consumer can pay the entire amount of loan in installments.

Initially the bank will provide loans for up to 50gm of pure gold but plans to provide loans for bigger investors too in the future.

Sona Swiss unveils 'Gifts in Gold' collection for Diwali

Sona Swiss unveiled 'Gifts in Gold' for Diwali. The new range launched is a diverse collection of products in 24 karat gold foil made with unique 3D technology.

The range includes Divine Collection, Flower Garland, Gold foil playing cards, Art décor frames and new range of gold flower collections and lots more.

The 24 karat gold foil art décor products range are handcrafted and have been specially designed and created using traditional goldsmith's skill combined with the latest patented 3D Art Technology.

‘The Divine collection’ includes 3D frames of Ganesha, Laxmi, Saraswati, Durga, Ganesh-Laxmi Pair, Ganesh-Laxmi-Saraswati Trio, Balaji, Shreenathji and Radha Krishna while the ‘Gold flower collection’ includes 24k gold rose, 24k gold carnation, flower brooch/ hair accessory collection, bouquet, 24k gold foil pendants and 24k gold cards.

All the products are made of pure 24 carat Gold leaf with a purity of 999.9 in a thousand. The company has also been independently certified for their gold purity by the Assay offices in London and New York.

All the gold products are also certified from Taiwan, USA and the gold foil products are patented for designing and manufacturing. All gold materials used by the company are of high purity and are imported from Switzerland.

Analysts expect gold to resume lower trend

Market is expected to make a higher opening and the immediate resistance can be seen at Rs12,800 levels. Likewise, the supports are at Rs12,650 and then Rs12,570 levels. Analysts are expecting gold to resume lower trend after a brief higher correction.

Gold prices remained range bound and traded sideways in Monday’s session, in the absence of any major economic trigger.

The only economic data from the US was the leading indicator for the month of September, which unexpectedly rose thereby giving a lift to the dollar, said a Kravy Comtrade report.

For the day, as the market awaits no economic data, prices are likely to remain sideways. However the report also said that the strengthening US dollar is likely to put pressure on the bullion market, hence indicating a bias on the lower side.

The dollar advanced for a fifth day against the euro after Federal Reserve Chairman Ben Bernanke endorsed additional fiscal stimulus to support the US economy. The dollar traded at 18-month high levels against the euro on this act of the chairman, it said.

The MCX December contract for gold prices were seen trading sideways while closing it formed a technical Doji pattern in the daily chart and closed at Rs12,682 levels.