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MCX Gold February contract is expected to find support near Rs 30700 and resistance at RS 30850.

10 Jan 2013

Amrita Mashar
In India's MCX Gold for February delivery is expected to trade in range of Rs. 30700- Rs.30900 for the intraday. Overall sentiments are sideways for today's trading session.

MCX Gold February contract is expected to find support near Rs 30700 and resistance at RS 30850.

MCX Gold February contract stayed flat from morning due to lack of volume and less movement in international market. Gold prices are trading in the range of Rs.30750-30800 from morning. Some volatility was witnessed in gold futures ahead of movement in USD/INR.

Some cautionary dollar demand was sparked due to fears of a repeat performance in February similar to that of fiscal cliff. As the two assets normally trade inversely from one another this lead to dip in gold prices.

Gold prices has been supported by hikes in seasonal physical demand, especially Chinese purchase stepping up report of precious metals.

On India's MCX, gold for delivery on February 5 was seen trading at Rs.30794, a percentage change of 0.01% as of 04.10 PM IST on Thursday.

On the Comex in Europe, price of gold for delivery on March 13 was spotted trading at $1661.65 as of 04. 220pm IST on Thursday.

Meanwhile, suggestions to sidestep US Congress to meet the nation's debt obligations is being dismissed by the White House. White house has declared that it is Congress' responsibility to pay the bills of the United States, said a report by Newsmax.

"There is no plan B. There is no backup plan," White House spokesman Jay Carney said to the media

"There is no alternative to Congress raising the debt ceiling." he emphasized.

The borrowing limit of $16.4 trillion has already been reached by the US government.

By late February or early March, the Treasury Department will run out of ways to cover debts and could begin defaulting on government loans, news reports said.(Amrita Mashar is Research Analyst, Commodity Online)

Reach Commodity Online at its service phone number: 079 40275050

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