Last Updated : January 04, 2012 14:00
Gold futures added to strong gains closed up by +0.99% to settled at 27656 as a broadly weaker U.S. dollar underlined prices ahead of the release of minutes from the Fed?s Dec policy meeting.
Gold futures started off the new year on a positive foot as the euro rose nearly 1% against the U.S. dollar, pulling further away from last week?s 15-month trough. Gold's correlation with the euro/dollar exchange rate is at its most positive in nearly two years, meaning Gold prices are more likely to move in synch with the euro than at any other time since Jan'10.
Prices found further support amid reports Iran had produced its first nuclear fuel rod, boosting the safe haven appeal of the precious metal. Nuclear fuel rods contain pellets of enriched uranium that provide fuel for nuclear power plants.
The report came after the Islamic Republic said it had test-fired two long-range missiles over the weekend as part of an ongoing naval drill in the Strait of Hormuz. Meanwhile, the Fed was to publish the minutes of its December policy meeting later in the day.
Gold traders will pay close attention for any hints the central bank could introduce further stimulus measures in the near-term to boost US economic growth.
Now technically market is trading in the range as RSI for 18days is currently indicating 44.26, where as 50DMA is at 28533 and Gold is trading below the same and getting support at 27454 and below could see a test of 27251 level, And resistance is now likely to be seen at 27819, a move above could see prices testing 27981.
Trading Ideas:
Gold trading range is 27251-27981.
Gold added to strong gains as a broadly weaker dollar underlined prices ahead of the release of Fed?s policy meeting.
Gold traders will pay close attention for any hints the central bank could introduce further stimulus measures.?
Morgan Stanley projected gold to average USD2,200 an ounce in 2012, citing low interest rates in the U.S.
Courtesy: Kedia Commodities
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MCX ALMOND 29 February 2012 contract was trading at Rs 371.25 . What's your view on it?
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