Gold: MCX

Gold: MCX December gold futures traded lower in the last week and breached the eight weeks price low on account of appreciating Indian rupee against the U.S. dollar. Favorable economic data from U.S. like unexpected jump in durable goods orders and a fall in unemployment claims made bullion to trade under pressure. U.S. advance Gross Domestic Product (GDP) for the third quarter is expected higher than the previous quarter, indicating well for the economy, by which gold prices to decline further. ¬¬¬¬¬Price Movement in the last week: MCX December gold prices opened the week at Rs 31,252/10 grams, traded lower but found good support at Rs 30,827/10 grams. Later price bounced back slightly from low and finally closed at Rs 30,926/10 grams (Thursday, October 25, 2012) with a loss of Rs 361/10 grams (down 1.15%) as compared with previous week’s close. Outlook for this week: MCX December Gold futures are expected to trade slightly lower on account appreciating Indian rupee against US dollar. Further, better economic data from US may reduce the demand for gold. MCX December gold shall find a support at 30,630/30,500 levels and resistance 31,150/31,300 levels. Spot Gold has support at 1680/1662 and resistance at 1715/1732 levels. Recommendation for this week: Sell MCX December Gold between 31100-31150, SL-31310 and Target- 30630/30500.