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.

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.

GJEPC's new office at Bharat Diamond Bourse

The Gem and Jewellery Export Promotion Council (GJEPC) shifts its office to the Bharat Diamond Bourse (BDB). On 9th October, an auspicious and festive day of Dussera in India, the Council shifted its exhibition cell to BDB. It will relocate its office within two weeks.

At the occasion, dignitaries’ from the diamond industry such as Anup Mehta, President BDB, Vasant Mehta, Chairman, GJEPC, Bakul Mehta, Convener – Diamond Panel , Nirupa Bhat, GIA, Diamantaires Ashish Mehta- Kantilal & Chhotalal, Kirti Doshi , Nirmal Barmecha, and also the GJEPC working committee were amongst the others present.

The Intent is to consolidate Mumbai’s entire diamond industry at one location. Presently, the industry is concentrated at two to three zones in Mumbai.

Bharat Diamond Bourse launches

According to a report by the Gem and Jewellery Export Promotion Council (GJEPC) the new diamond bourse in India has officially been launched last week.

The GJEPC inaugurated its office at the Bharat Diamond Bourse in Bandra-Kurla complex, Mumbai on 9 October. Customs and some of the first offices from other sectors of the industry are likely to make the move to the Bharat Diamond Bourse by end of this year.