MUMBAI (Commodity Online): Gold futures succumbed to profit taking at higher levels by the traders in the early hours of the trading in the domestic futures market Wednesday. Gold prices were at a record level for the last week.
MCX gold December contract opened Rs.19 lower at Rs.17, 003/10gm and moved between Rs.17,001-Rs.17,038/10gm. The contract traded Rs.10 down at Rs.17,012/10gm. December contract volumes clocked 1,847 lots.
Now support for the gold MCX is seen at 16953 and below could see a test of 16883. Resistance is now likely to be seen at 17066a move above could see prices testing 17109.
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Gold maintained high levels even as the U.S. dollar gained ground. Investors were pulling out of the euro and other non-dollar currencies, which boosted the greenback.
But at the same time they did not want to unwind commodities positions they've build up in recent weeks as they've moved out of the dollar and into hard assets, equities and higher-yielding currencies.
Gold opened at 16943 and dipped marginally as the trading day began, reaching a low of 16927. This move reversed, despite a rallying dollar and weaker equity markets and climbed for much of the session, finding mild resistance near 16970.
It briefly retreated, but stayed well supported on the back of more fund buying, carrying gold to an intraday high of 17040. Light profit taking took it lower as the day unwound, finally settling at 17022.
