Following weeks of negotiations, Greek Prime Minister Lucas Papademos reached a deal with the country's main political parties Thursday on spending and wage cuts required for EUR130 billion ($172.7 billion) in aid from the European Commission, the International Monetary Fund and the European Central Bank.
In the U.S., the Labor Department announced jobless claims were lower than forecast last week and the Commerce Department said inventory growth in December exceeded expectations.
That sent the dollar down against most currencies, as investors emerged from safe‐haven bets taken when the economic recovery looked less certain.
Echo of Greek bailout could not make louder impression and bullion desk continued to progress slowly and extended their longest rally of the year.
Gold gained for the second time in three days adding more than 1% to the kitty and crossing $1750 consecutively for the third day which makes the closing above $1750 more critical. Silver also gained more than 1% trading near $34.
At the domestic front Gold traded near two month high whereas silver could not break 57800 making it the strong resistance to crack.
Weakness at the US front which makes the Greenback weak as well as hovering heaven demand makes the Bullion desk Hot Cake to buy. Gold will be the best buy with the 28550 being strong resistance.
Courtesy: Edelweiss Comtrade Limited Research
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