Gold trading range for the day is 29071-29401. Technically market is getting support at 29147 and below could see a test of 29071 level, And resistance is now likely to be seen at 29312, a move above could see prices testing 29401.
Gold dropped and settled down by -0.15% at 29222 as pressure seen after data indicated an improving US employment picture lessening the chances for monetary easing measures. The precious metal came under further pressure as investors piled in to the relative safety of the US dollar amid mounting concerns over the global economic outlook.
The good news was offset after the April numbers were revised downwards. Instead, hopes for policy reforms are expected to support the rupee. Government officials have strongly hinted at a potential hike in diesel prices, which would help alleviate concerns over India’s fiscal outlook.
Spot Gold prices declined 0.3 percent, in yesterday’s session eyeing no further stimulus measures to boost the major economies of the world which are gradually slowing down. Additionally strength in the dollar index (DX) also acted as a bearish factor for the gold prices.
The yellow metal touched a low of $1,554.34/oz and closed at $1571.8/oz in yesterday’s trading session. On the MCX, Gold August contract also declined 0.1 percent and closed at Rs.29,222/10 gms after touching a low of Rs 29,161/10 gms on Thursday. However, depreciation in the Indian Rupee cushioned sharp fall in the prices in the domestic market.
Bullions desk continued its downtrend on stronger dollar whereas COMEX Gold tumbled by more than one percent to $1,555, the lowest level in almost two weeks as minutes of FOMC didn’t show central banks interest to provide further stimulus. Wednesday’s minutes showed that the Fed was open to buying more Treasury bonds to stimulate the economy.
The greenback rose to a two year high at 83.80 as euro zones debt crisis continued to pushed euro currency to trade lower. Gold has been trading in a particular range of $1,630 to $1,550 where major support lies at $1,540 & $1,530 and INR 29,100 with resistance above $1,585 and INR 29,400, however it could rebound if prices failed to sustain below $1,550.
With inputs from Kedia Commodities, Edelweiss Comtrade and Angel Commodities.
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