Gold prices ended with gains as a weakening dollar and short covering drove investors back into buying. Gold, however, was headed for a weekly decline of nearly 7 percent, its biggest since late September, as funds rushed to liquidate positions with just two weeks left on this year's calendar.
Solid demand for Spain's bond auction on Thursday and data showing U.S. jobless claims at a 3-1/2-year low gave a reprieve to equities, industrial and precious metals, which have suffered heavy losses this week.
A record-low rupee has kept local Gold prices at lofty levels, depressing buying interest despite the ongoing Indian wedding season.
The need for cash has overwhelmed gold's traditional status as a safe haven in the past few months, putting the metal on course for its first quarterly fall since end-September 2008 when the global credit crunch was at its worst.
The need for cash has overwhelmed gold's traditional status as a safe haven in the past few months, putting the metal on course for its first quarterly fall since end-September 2008 when the global credit crunch was at its worst. Gold has, therefore, benefited recently from developments that have reduced risk aversion and the flight to cash.
Now technically market is trading in the range as RSI for 18days is currently indicating 38.59, where as 50DMA is at 28585.1 and gold is trading below the same and getting support at 27561 and below could see a test of 27486 level, And resistance is now likely to be seen at 27680, a move above could see prices testing 27724.
Trading Ideas:
Gold trading range is 27486-27724.
Gold prices ended with gains as a weakening dollar and short covering drove investors back into buying
Solid demand for Spain's bond auction and data showing U.S. jobless claims at a 3-1/2-year low gave reprieve to metals
Fitch Ratings cut its outlook on France and said it might downgrade the ratings of 6 others
Courtesy: Kedia Commodities
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