MUMBAI (Commodity Online): Gold prices succumbed to profit booking at higher levels on Thursday in the domestic futures market despite the better sentiments in the international market due to the weakness in US dollar.
MCX most active gold December contract opened down by Rs.16 at Rs.15,905/10gm. The contract saw movement between Rs.15,865-Rs.15,905/10gm. At 10.51 am IST, the contract traded down by Rs.45 at Rs.15,876/10gm. Total volumes in December contract recorded 1979 lots.
COMEX Gold however stayed steady above the $ 1060 mark as the dollar tumbled to the lowest level since 11 August 2008. However the $1070 level should act as a crucial resistance for the day. A break of $1060 should then activate a bearish journey for gold in the near tern.
Start trading in commodities from as low as $50. Join nowGold ended lower as participants book profits after the metal extended its record high overnight. Gold opened at 16010 on MCX. Gold continued to climb, following stronger oil prices, reaching a high of 16034.
Profit taking pulled it lower, finding support near 15940.The dollar rallied on the back of better than expected retail sales causing gold to retreat, washing out longs. The metal tumbled to an intraday low 15860.
Equity markets later rallied as the trading day ticked towards the close, helping the metal push higher, finally closing at 15921. Now support for the gold MCX is seen at 15843 and below could see a test of 15764. Resistance is now likely to be seen at 16017, a move above could see prices testing 16112.
