Gold trading range for the day is 29237 29745. Technically market is getting support at 29332 and below could see a test of 29237 level And resistance is likely to be seen at 29586 a move above could see prices testi Gold trading range for the day is 29237 29745. Technically market is getting support at 29332 and below could see a test of 29237 level And resistance is likely to be seen at 29586 a move above could see prices testing 29745. Spot Gold prices declined 1.4 percent due to concerns of global slowdown of the economy particularly showing decline in imports from China and lingering concerns in the Euro Zone region.
Additionally strength in the DX also exerted pressure on the gold prices. The yellow metal touched a low of $1563.89/oz and closed at $1564.5/oz in yesterday s trading session. On the MCX Gold August contract declined 0.8 percent and closed at Rs.29 428/10 gms after touching a low of Rs29 395./10 gms on Tuesday. Additionally appreciation in the Indian Rupee also pressurized prices in the domestic market. Gold prices dropped and settled down by nearly Rs.229.00 settled at 29428 as investors largely avoided the metal and opted for the dollar on sentiment little in the way of policy is battling growing headwinds.
Pressure also seen from the rupee firmness as buoyed by strong gains in local stocks and dollar sales by exporters. However eurozone FM still must give eurozone bailout funds the green light to invest in Spanish and Italian bond auctions which kept borrowing costs high in those countries and sent investors running to Gold's traditional hedge the greenback. ETP Gold Holdings fell 4.2 metric tons to 2 404.98 tons the biggest decline since May 23.
Gold demand in China may expand 13% to 870 metric tons in 2012 the World Gold Council said dropping a forecast for consumption to reach as much as 1 000 tons. JPMorgan Chase Co. cut its estimates for Gold by 6.7% to $1 671 an ounce for 2012 and by 3.1% to $1 775 an ounce in 2013. The China reported the nation s trade surplus widened to a 3 year high of $31.7bn vs $18.7bn. However Gold saw some support on sentiment that Beijing will eventually stimulate its economy via rate cuts or other easing measures going forward which would make gold an attractive play down the road.
