MUMBAI (Commodity Online): Gold prices continued to surge towards the historic level in the domestic futures market in line with global sentiments Tuesday. The weakness in US dollar propped up the yellow metal as investors lost faith in the greenback.
MCX gold December contract opened Rs.19 higher at Rs.16,943/10gm and moved between Rs.16,943-Rs.17,021/10gm. At 10.25 am IST, the contract traded Rs.80 higher at Rs.17,004/10gm. December contract volumes clocked 2668 lots.
Now support for the gold MCX is seen at 16851 and below could see a test of 16777. Resistance is now likely to be seen at 16971, a move above could see prices testing 17017.
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Dollar against euro has propped up gold in the overseas markets. In the global market gold traded at $1136.04/oz. In the domestic market gold and silver futures traded higher on strong global trends coupled with buying support.
Gold have extended record highs yet again as rising risk appetite and a weak U.S. dollar continue to be a reliable combination for gold bulls. Gold opened on its lows at 16824 on MCX.
The metal turned offered after rallying to all new highs overnight. Equity markets later rallied and the dollar retreated helping gold climb from its lows. The metal was well bid during the morning, finding resistance near 16880.
However the dollar rallied due to a speech delivered by Chairman Bernanke, making reference to the Fed's desire to bolster confidence in the USD, causing gold to tumble.
This move was short lived as more buying flooded the market carrying gold to a new all time high of 16944 and later closed nearby at 16924.
