DGCX Gold Outlook 5th Feb, 09

U.S. gold futures settled up 1 percent yesterday, rebounding from the previous session's decline on worries over massive liquidity injections by central banks and the expectation of more uptrend in precious metals in light of major brokerage upgraded its price forecast.

Gold prices rose yesterday despite strong dollar as Passage of President Barack Obama's $825 billion proposed economic stimulus package would likely be inflationary.

According to the report from UBS, Gold investment demand will double in 2009 compared to 2007, and gold prices will average $1,000 an ounce in 2009.

The U.S. Census Bureau said that construction spending was at an annual rate of $1.054 trillion in December, down 1.4% from November's pace. For all of 2008, construction spending totaled $1.079 trillion, down 5.1% from a year ago.

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International spot gold traded in the range $ 908.70- $ 894.50a Troy Ounce and last quoted at $905.40

Weekly Outlook (DG. OCT.)

$933 is the major resistances .If sustain above that level, expect more uptrend. Resistances are $954, $968, $988. Supports are at $909, $899, $881 and $862.

Last day DGCX Gold APR. Traded in the range $910.30-$896.60and closed at $ 905.40

TECHNICAL OUTLOOK (Intra-day)

GOLD (APR) - Bullish above $ 899bearish below $ 894

Courtesy: JRG Wealth Management