MUMBAI (Commodity Online): Gold futures fell in negative zone as dollar gathered some strength in mid London trades. Dollar typically strengthens when there are less data releases from US.
Following the recovery of US dollar Friday the gold futures in the global market slipped to the negative territory. COMEX Gold floated around $ 1039 mark in the mid London trade.
MCX December gold tumbled to as low as RS 17201 till now, a break of Rs 17185 may trigger bearish alarms in the counter with the support around 17130 & 17090.
Silver was at $18.29 an ounce against $18.51. Metals consultancy GFMS said on Thursday the metal may rise above $20 an ounce as surging investment more than offsets a drop in fabrication demand.
Start trading in commodities from as low as $50. Join nowThe momentum however depends on the US dollar which is very volatile this as it has been widely used as a global carry trade currency since December 2008 when US had cut the rates to mega low 0-.25 %.
Gold prices could continue to trade with a negative bias as a fall in risk appetite and strength in the dollar has put the yellow metal under selling pressure. This week has witnessed risk aversion in the financial markets over mixed economic views. Expected lower interest rates in the US may keep the dollar under pressure but mixed economic data could keep sentiments subdued.
Investment demand from central bankers is on the rise and this factor is expected to be positive for the yellow metal. If more news on gold buying by central bankers is released in the coming days then prices could test new highs.
On intraday basis, Spot Gold prices have immediate support at $1132/$1122 whereas resistance is seen at $1149/$1156. Spot Silver prices shall find support at $18.23/$17.94 whereas resistance is seen at $18.70/$18.88.
