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.

Silver more volatile than gold

Silver metal remained more volatile than the yellow metal in the month of September.

The overall trends in the two prices were very similar as an uncertain silver market allowed itself to be influenced by gold. Although the market feeling was, in line with the relative fundamentals of the two metals, that silver was the more sluggish of the two with respect to the upside, the Standard Bank report said.

Gold prices buffeted in September: Standard Bank

Gold prices were buffeted during the month of September in the same way as those of any other asset class, but in keeping with gold’s history as an investment vehicle (as well as a natural resource commodity), prices traded in a narrower range than the rest of the precious metals sector, said a report by Standard Bank on Monday.

The report said that between the start of September and the beginning of October, gold gained about 7% in price, while silver and PGM (Platinum group metals) prices fell. A single snapshot does not tell the whole picture, however, and the market itself experienced a variety of phases as problems escalated in the financial system.

One tangible element was the development of vast fund flows into the major Exchange Traded Funds as investors looked to reduce counterparty risk, it said.

Titan launches Raga Diva

Titan launched Raga Diva on 30 September, 2008, in Mumbai. The new women's watch collection which are inspired by traditional kundan work was launched by bollywood actress Soha Ali Khan.

“The new collection of watches express the desire of every woman today to express the Diva inside her. The flamboyant designs of these watches make them the perfect accessory to be worn during the festival season when women dress up in their preeminent way and want to feel their feminine best,” said Ajoy Chawala, VP of Titan.

The new watch collection features 24 models of which seven are of distinct styles and range between Rs4,000-Rs10,000. The collection will be available at World of Titan showrooms and multi brand outlets across the country.