Gold futures traded slightly higher

Gold: Gold futures traded slightly higher in the first half of the last week as U.S. Treasury Secretary Geithner warned failure to raise the debt ceiling would impose economic hardship. Further, economic measures by the Japanese government, as it will spend 10.3 trillion yen ($116 billion) to drive a recovery from a recession to end deflation and boost growth also provided support to the gold price. However, MCX February gold futures fell sharply on Thursday due to strong gains in Indian rupee against US dollar as the government of India, in its fuel reforms, allowed oil companies to make small changes to diesel prices over a period of time. Holdings in the SPDR Gold Trust, the World's largest gold-backed exchange-traded fund, declined to 1332.61 tonnes as on January 17, 2013, down 0.38 % as compared to 1337.73 tonnes on January 14, 2013. ¬¬¬¬¬Price Movement in the Last week: MCX February gold prices opened the week at Rs 30,800/10 grams, initially traded slightly higher but found strong resistance at Rs 30,934/10 grams, later prices fell sharply and touched a low of Rs 30,530/10 grams and currently trading around Rs 30,640/10 grams (January 18, Friday, 5.50 PM) with a loss of Rs 150/10 grams as compared with previous week’s close. Outlook for this week: MCX February Gold futures are expected to trade slightly lower on account of strong gain in Indian rupee against US dollar. MCX February gold shall find a support at 30,800/30,935 levels and resistance 30,400/30,210 levels. Spot Gold has support at 1672/1655 and resistance at 1710/1723 levels.