MUMBAI (Commodity Online): Gold prices slipped in mid London trade on Friday on the emergence of US dollar against major currencies, particularly Euro. Global equities in Europe were traded on a weak note.
COMEX gold December futures contract was unable to break above the $1050 mark, the level, which we had mentioned in the morning update, has been intact. It fell more than $6 from those levels today and a further downward spiral can be expected on break of $1043 towards 1039, 1032 & 1020 levels.
MCX bullion also slipped in red quoting at Rs 15827 down more than Rs 10 per 10 grams. A break of Rs 15914 levels may take it to 15880 & 15800 levels today.
Recently the domestic gold futures are seen trapped between the volatile movements in the Rupee. The MCX December contract traded in the range of merely Rs 200 to Rs 16014-15810 due to ups and downs in the Indian currency, which is directly affected by the Indian equity market and US dollars movement in the international markets.
Economic optimism in the financial markets could boost risk appetite in the coming week and lead to a weaker dollar. In the recent rally of gold prices, the yellow metal had mainly rallied on the back of weakness in the dollar.
Since the demand for the dollar could remain subdued as risk appetite could boost demand for higher-yielding and riskier investment assets, the appeal of the dollar as a safe-haven. Gold prices could take support of the weaker dollar and trade higher.
On intraday basis, Spot Gold prices have immediate support at $1031/$1017 whereas resistance is seen at $1053/$1061. Spot Silver prices shall find support at $16.25/$15.85 whereas resistance is seen at $16.85/$17.10.
