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Intraday traders are advised to go for long positions with strict stop loss of Rs.30800.

07 Dec 2012

By Amrita Mashar
MCX Gold for February delivery is having good support at Rs.31000 below which one could see a testing of Rs.30800 level by the commodity on Friday. Resistance for the commodity is expected at Rs.31350 and a move above the level could see prices testing Rs.31550 levels.

Gold opened slightly positive on MCX as well as in the international markets subsequent to short-covering witnessed in early trading session ahead of European Central Bank President Mario Draghi's speech that left rates on hold at a record low 0.75%.

“The economic weakness in the euro area is expected to extend into next year.” Draghi said. “...annual real GDP growth (is expected) in a range between -0.6% and -0.4% for 2012, between -0.9% and 0.3% for 2013 and between 0.2% and 2.2% for 2014.”.

The market participants closely monitored negotiations pertaining to US fiscal cliff issue between Republicans and Democrats. While Treasury Secretary of US, Timothy Geithner is absolutely prepared to go off the cliff, investors are warning dire consequences to such a move. The automated effecting of $600 billion in spending cuts and tax hikes, subject to the failure of budget talks in US would usgher in a recession, economists warn.

The markets would closely monitor US non-farm pay roll data that is scheduled to be released today at 07.00 PM IST which is expected to be positive for bullion. The data is forecast to say US added 89000 jobs in November compared to October figures at 171000.

Intraday traders are advised to go for long positions with strict stop loss of Rs.30800.

Gold for February delivery was seen trading at Rs.31237 per 10 grams, a gain of 0.04% as of 02.59 PM IST. Meanwhile, gold on the Comex was seen trading at $1699.25 an ounce, a loss of 0.14% against previous close as of 03.15 PM IST. 

(Amrita Mashar is Manager-Research, Commodity Online)

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