Gold Updates

Gold futures continued their southbound journey for the tenth trading day. This morning MCX February Gold so far has tested a low of Rs 31,062.

It may be recalled, that we have mentioned that Gold is likely to seek considerable support around the Rs 31,000-level.

Select momentum oscillators like the daily Stochastic Slow remains in the oversold zone, while the 14-day RSI is giving a positive divergence.

Even a 50 per cent retracement from the current levels, can give us a target of around Rs 31,750-odd levels in the next couple of trading sessions.

However, one needs to keep a stop around Rs 30,900 for fresh long positions.

In today's outlook, the Gold MCX February futures may face resistance around Rs 31,325-31,365-31,400. On the downside, Gold MCX may seek support around Rs 31,075-31,035-31,000.

The corresponding key levels for Gold Mini January futures are as follows - support at Rs 30,900-30,860-30,820, while face resistance around Rs 31,150-31,185-31,225.

Gold Updates

All eyes were on Brussels on Wednesday as European ministers met to discuss about the prospects of Greece. Metal traders remained confused on the fate of major industrial metals on contradictory events governing the markets. Barring Nickel other metals were mostly on the sidelines.
On one hand, Europe crisis resurfaced after Moody's downgrade of France credit rating on the contrary US economy continued to resurge. The much talked term fiscal cliff was subsided a bit by the reports of better housing starts last night.
US census bureau reported a rise of 3.6% in the US housing starts in October to 0.894 million. The expectations were of a 3.7% decline. This was highest level of housing starts since July 2008.
Housing starts for September were revised down to 0.863 million units from a previously reported 0.872 million units. Meanwhile, building permits issued in October fell 2.7% to a seasonally adjusted 0.866 million, compared to expectations for a decline to 0.865 million.
In Japan, trade deficit has depicted a gloomy picture as exports fell sharply lower. Japanese exports were also reported to have plunged 6.5% amid tension between Japan and China.
Poor Japanese trade data is negative for Yen, as it increases the odds of more easing from the Bank of Japan. After the data yen tested a seven month low of 81.72 against the Dollar. The trade deficit hit 549 billion yen ($6.72 billion)
The US Dollar dwindled between gains and losses against the Euro before closing lower on Tuesday. The greenback tested a low of 1.2828 and a high of 1.2763. US currency settled at 1.2816, down 0.04%. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched down by 10 pips to 80.89.
LME Copper was almost sideways in Asian trades, trying to gather analyze the confusing situation. Copper three month forwards were trading at $ 7743 per tonne, compared to $ 7750 per tonne on Tuesday. MCX Copper settled at Rs 427.7 per kg. Metal broke its 100 EMA and tested a high of Rs 429.8 per kg.
LME Nickel settled at $ 16360 per tonne yesterday and is now up by $ 85 per tonne at $ 16445 per tonne. Nickel has slipped sharply lower from February 2011 levels of $ 29000 per tonne on fading steel demand.
This year Nickel has whipped 11% of its value in 2012. The prices were at $ 18420 levels at the beginning of this year. Higher production of stainless steel and rise in inventories due to lower demand has affected Nickel negatively.
MCX Nickel tested a one week high on the back of short covering in the current month contract. Stainless steel material Nickel tested a high of Rs 918 per kg before settling at Rs 909 per kg, up 1.2%.
LME Zinc was down by $ 18 per tonne at $ 1916 per tonne on Wednesday. MCX Zinc ended last session at Rs 105.05 per kg, down 0.4%.

Gold Updates

Bullion metals ended lower at Comex on Tuesday, 27 November 2012. Gold prices ended lower for second straight day as the dollar headed up and a sort of debt deal was reached at Greece. Upbeat US data also took some shine away.

Gold for December delivery fell $7.3 (0.4%) to settle at $1,742.3 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.

On Tuesday, December silver fell 16 cents, or 0.5%, to settle at $33.98 an ounce.

In overnight trading, the European stock markets rallied only modestly on news that Euro zone leaders meeting in Brussels agreed late Monday to disburse fresh bailout funds to cash-starved Greece. Most market watchers had reckoned EU leaders would grant new monies to Greece. The world market place showed no significant reaction to the as-expected news on Greece.

A meeting to discuss Greece's finances wrapped up early Tuesday with Greece's institutional lenders reaching a deal to pave the way for Athens to receive almost 44 billion euros (almost $57 billion) of financial aid, while bringing its debt down to a sustainable level. The deal is expected to trigger another aid payment for the debt-struck country.

A heavy slate of U.S. economic data released Tuesday did show generally better-than-expected readings overall, and that put modest upside pressure on the U.S. dollar index, which in turn helped push gold and silver prices to their daily lows.

The dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.2% on Tuesday. The Euro currency also was initially supported on the Greece news but could not hold those gains as the day wore on.

In today's economic news at Wall Street, Consumer confidence rose in November to its best reading in more than four years. The latest consumer confidence reading for November came in at 73.7, while market expected a reading of 73.0. The Conference Board said its consumer confidence index rose to 73.7 in November from 73.1 in October. That's above the 72.2 level forecast. The October reading was upwardly revised from 72.2.

Separately, the September Housing Price Index from the FHFA increased by 1.1%, which follows a 0.7% increase observed during the prior month. Also, the September Case-Shiller 20-city Home Price Index rose by 3.0%, while a 3.1% increase had been expected. This followed the previous month's increase of 2.0%.

Durable goods orders were unchanged in October, which was better than the 0.4% decrease that had been expected. Excluding transportation related items, durable goods orders increased in October by 1.5%, which was better than the 0.4% decrease that had been broadly anticipated. Prior month's reading was revised down to reflect an increase of 1.7%.

Traders and investors are also focused on the negotiations among U.S. lawmakers and President Obama regarding the so-called “fiscal cliff” tax increases and spending cuts that are approaching.

At the MCX, gold prices for February delivery closed lower by Rs 149 (0.45%) at Rs 32,594 per ten grams. Prices rose to a high of Rs 32,825 per 10 grams and fell to a low of Rs 32,550 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed lower by Rs 198 (0.31%) at Rs 63,536/Kg. Prices opened at Rs 63,877/kg and fell to a low of Rs 63,361/Kg during the day's trading.

Gold Updates

Gold futures wavered near $1750 an ounce levels unable to surge further as safe haven appeal for the metal diminished. However the weak US dollar continued to lend support to the metal at lower levels.
Gold has been unable to breach the $1800 mark for more than a year needs some solid reason to breakthrough that level, and the US fiscal cliff could provide the next breakthrough to the metal. The fiscal cliff refers to more than $600 billion of automatic U.S. tax hikes and spending cuts due to occur in January unless circumvented beforehand.
News of a deal to clear the way for Greece’s next aid payment sent the euro higher Tuesday, with the common currency briefly topping the psychologically-important $1.30 handle, while the U.S. dollar lost ground.
The euro changed hands for $1.2987 Tuesday afternoon in East Asia, up from $1.2961 late Monday in North America. The advance came after Greece’s creditors reached a long-awaited deal to pave the way for Athens to receive fresh financial aid
The dollar, meanwhile, moved in the other direction. The ICE dollar index, which measures the greenback against a basket of six other currencies, slipped to 80.114 from 80.227 late Monday.
Gold for December delivery rose 50 cents to $1,750.10 an ounce on the Comex division of the New York Mercantile Exchange during East Asia trading hours.
Greece’s institutional lenders reached a deal to pave the way for Athens to receive almost 44 billion euros (almost $57 billion) of financial aid, while bringing its debt down to a sustainable level.
MCX December gold futures are trading up nearly Rs 55 at Rs 32415 per 10 grams. It may face a resistance near Rs 31475 levels today.

Gold Trading Level's

TUESDAY 27-11-2012


TRADING LEVELS FOR MORNING SESSION



 MCX DEC GOLD


SUPP     32300       32250        32190

RES       32415       32485        32565

Gold updates

The hard drop in Indian Rupee to the 2 ½ month lows bought the Indian metal to the new highs at the time when the marriage season picks up in India.

The Indian rupee continued to decline against the US dollar for the fifth day in early trade on Monday, on persistent dollar demand from banks and importers on the back of higher dollar in the overseas market.

The currency had tumbled by 30 paise to close at two-and-a-half-month low of 55.51 against the dollar in the previous session on Friday. Today it resumed higher at 55.45 per dollar but declined immediately to 55.61 per dollar before quoting at 55.58 per dollar at 10.40 am. It moved in a range of 55.42 per dollar and 55.61 per dollar during the morning deals.

MCX December gold futures are trading up almost by whopping Rs 200 at Rs 31400 per 10 grams, thanks to the cheap Indian Rupee.

On the other hand the international gold futures were little depresses trading down $ 2 at $ 1749 per ounce as the US dollar strengthened amid caution over developments in Europe. On Friday, they soared $23.20 to settle at $1,751.40, their highest level since Oct. 17.

The drop on Monday came as markets awaited the Eurogroup’s talks to approve disbursal of the next tranche of loans to Greece. The general mood in equity and currency trading also portrayed investor risk aversion, as markets digested the result of elections in Spain’s wealthy Catalonia region.

In the region’s elections, a nationalist party seeking a referendum on independence won less seats than required for an absolute majority, but enough to return as the single largest party in the local parliament.

The ICE dollar index, which measures the greenback against a basket of six other global currencies, rose to 80.269 during Asian trading hours from 80.190 Friday afternoon in North America.

Gold has been in demand in international market with several central banks also increasing gold as a part of their reserves with Brazil a latest one to do so. Gold rallied 11% this year as investors and central banks bought bullion to diversify assets.

According to a data provided by the International Monetary Fund, central banks from emerging markets continued to increase their holdings in October. Brazil, Turkey and Kazakhstan, all increased their gold holdings with an aim to diversify their foreign kitty in the back drop of growing macroeconomic uncertainty and ultra period of ultra loose monetary policies-which threatens currencies debasement.

Gold Updates

Gold Flattens After Recent Gains

Gold December futures crushed in the early Asia action today after smash gains of nearly $20 the past buoyed by the rally in equities and weak US dollar.

Wall avenue scored its best session in more than two months the past helped by positive housing data and increasing confidence that a U.S.budget deal would be reached to avoid the so-called “fiscal cliff.”

European stocks likewise saw a strong advance, with many of the region’s main indexes closing more than 2% higher.

In the present day, Asian stocks rose Tuesday after an overnight rally for global stocks on optimism the U.S. fiscal-cliff will be averted, though higher valuations after recent gains and a pre-market downgrade of France’s credit rating helped cap gains.

Hong Kong’s Hang Seng Index added 0.9%, Australia’s S&P/ASX 200 and South Korea’s Kospi rose 0.5% each, and Taiwan’s Tai ex gained 0.3%. Japan’s Nikkei Stock Average rose a modest 0.1% after leading market gains over the past few sessions, while China’s Shanghai compound Index slipped 0.1% after a higher opening.

During the Tokyo midday break, the Bank of Japan released its latest policy decision, keeping its interest-rate target and asset-buying program unmoved.

Gold for December delivery is trading flat at $1,734.9 an ounce on the Comex division of the New York Mercantile Exchange on Monday. Yesterday, it rose $19.7 (1.2%) to settle at $1,734.5 an ounce rising to as high as $1,735.5 during intraday trading.

MCX December gold futures may open today’s session near Rs 31685 levels with support near Rs 31650 levels and 31750 levels.