MUMBAI (Commodity Online): Gold futures soared to the Rs 16700 mark per ten grams in the domestic futures market Wednesday on the back of weak US dollar.

MCX gold April contract surged to as high as Rs 16784 per 10 grams. It was recently seen quoting at Rs 16756 up over Rs 40 from yesterdays closing. The day traders may go long on dips with target of Rs 16800 and stop loss of Rs 16730 levels.

The most active April gold futures on COMEX jumped to as high as $ 1129.3 per ounce. It may face a resistance near $ 1135 levels.

US dollar approached the 1.3800 mark against the Euro as the Fed continued to reiterate that the interest rates will be kept at the current ultra low levels for a long period of time.

Trading platform that even a 5 year old can trade. Join now

Gold is rallying further after yesterday's gains and trading $6 higher at $1,128//oz during Asian hours. Gold's bullish pattern is likely to continue amid Greece debt concerns still persisting in the market.

US producers' price index is also expected to have fallen in February which may be negative for the dollar. Asian stocks are on eight-week high, following low interest rates in the US. Crude Oil will be important driver for Gold prices.

Prices will remain firm during the day with some profit booking expected in later sessions. MCX gold may open higher in line with stronger international gold prices.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook