Gold prices traded in the range of $821-$883.6 a troy ounce with prices rallying strongly in the initial three sessions, as the depreciating dollar enhanced the appeal of metal as an alternate asset class.
The dollar fell significantly against the euro and fell to $1.4719 levels as US Federal Reserve Bank slashed the target lending rate by 75 basis points to 0.25%, the lowest ever. The consensus was of a 50 basis points cut. With policy makers emphasizing that Fed will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability;the metal gold was seen to be strongly buoyant.
Nevertheless, gold prices pared gains as oil fell below $33 a barrel and dollar recovered on speculation that decline in dollar was too steep. Reports showing lesser than expected decline in initial jobless claims and Philadelphia Fed Index, followed by European Commission comments that the euro region may suffer a “substantial” effect from the financial crisis next year supportedthe gains in dollar.
Today on the electronic session, gold prices are currently trading higher by around six dollars,backed by weak dollar and firmer opening in crude oil prices. Silver also gained. On the economic front, we have euro-zone industrial new orders to watch for. The data is expected to side down further in the month of November by further 4%.
On the whole, we expect a higher opening ondomestic MCX market and prices are expected to be trading sideways for the day.
Showing posts with label MCX. Show all posts
Showing posts with label MCX. Show all posts
Monday, December 22, 2008
Wednesday, October 22, 2008
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.
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.
Tuesday, October 21, 2008
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.
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.
Monday, October 20, 2008
US Federal testimony awaited: Karvy Comtrade
On account of weakening US dollar today bullion prices are trading higher by almost $12 on account of weakening US dollar. The dollar is seen to weaken on concern that the US Federal Chairman may forecast a prolonged downturn when he speaks today.
Ben Bernanke will testify at the House Budget Committee on the economic outlook and financial markets at 10 am in Washington. The continued poor economic data emerging from the nation has lead to poor economic outlook for the world’s largest economy.
Single-family home building sank to the slowest pace in 26 years in the US in September and the industrial production index dropping to 2.5 years lows, has increased lower economic prospects. The economic sentiment is badly hit as there seems to be no symptoms of revival in the housing sector.
No major economic data is awaited today; however the outcome of the US Federal chairman’s testimony will be crucial to watch out for. Prices are likely to remain on the sidelines for the day, on back of the weaker US dollar and uncertainty of the economic revival.
“The December contract gold on MCX traded lower and posted a lower closing at Rs12,587 levels. Market is moving lower as it is trading below the 50-day EMA in the daily chart. Market is likely to take an initial correction and the immediate resistance is seen at Rs12,624-Rs12,650 levels. If prices are sustaining below the resistance we may expect market trading lower. The supports are at Rs12,400 then Rs12,325 levels,” said a daily commodity report by Karvy Comtrade.
Ben Bernanke will testify at the House Budget Committee on the economic outlook and financial markets at 10 am in Washington. The continued poor economic data emerging from the nation has lead to poor economic outlook for the world’s largest economy.
Single-family home building sank to the slowest pace in 26 years in the US in September and the industrial production index dropping to 2.5 years lows, has increased lower economic prospects. The economic sentiment is badly hit as there seems to be no symptoms of revival in the housing sector.
No major economic data is awaited today; however the outcome of the US Federal chairman’s testimony will be crucial to watch out for. Prices are likely to remain on the sidelines for the day, on back of the weaker US dollar and uncertainty of the economic revival.
“The December contract gold on MCX traded lower and posted a lower closing at Rs12,587 levels. Market is moving lower as it is trading below the 50-day EMA in the daily chart. Market is likely to take an initial correction and the immediate resistance is seen at Rs12,624-Rs12,650 levels. If prices are sustaining below the resistance we may expect market trading lower. The supports are at Rs12,400 then Rs12,325 levels,” said a daily commodity report by Karvy Comtrade.
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