MUMBAI (Commodity Online): Gold prices slipped slightly in the domestic futures market Friday as traders drowned profits due to the firming Asian equities. Asian shares were broadly higher Friday, taking their cue from Wall Street's strong performance overnight.
MCX gold December contract opened Rs.44 lower at Rs.16,551/10gm and moved between Rs.16,536-Rs.16,567/10gm. At 10.38 am IST, the contract traded down Rs.38 at Rs.16,557/10gm. December contract volumes clocked 1,321 lots.
COMEX Gold is down $1.8 at $ 1090.6 per ounce and counter is hitting above $1090 for the 3rd consecutive day. The breach of $ 1100 may take some time and a mild correction can be expected before that.
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Technically gold after retesting the initial resistance of 1094$, the metal is forming a right shoulder of the a head and shoulders top pattern on the chart and support for the gold MCX is seen at 16475 and below could see a test of 16381. Resistance is now likely to be seen at 16632, a move above could see prices testing 16708.
Foreign exchange markets were trading in a fairly tight range ahead of the U.S. payrolls data, with the euro at $1.4874 from $1.4875 late in New York and at Y134.90 versus Y135.00. The U.S. dollar was at Y90.69, from Y90.75.
Gold held and traded near to $1,100 a troy ounce on Thursday after hitting a record high in the previous session, and now market consolidated ahead of today’s significant US employment data. After India now Sri Lanka bought a small volume of bullion to diversify its reserves.
