Gold Updates

Bullion metals ended substantially lower at Comex on Wednesday, 28 November 2012. Gold prices ended lower for third straight day as the dollar headed up. Just after the Comex gold futures market opened, heavy sell orders flooded in and prices quickly extend earlier losses and hit the daily low. There was no major news event, which occurred during to explain the sudden downdraft in prices. Silver futures followed gold's lead and sold off sharply. But, silver by the close Wednesday did post a good recovery from its daily low.
Gold for December delivery fell $25.8 (1.5%) to settle at $1,716.5 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday.
On Wednesday, December silver fell 30 cents, or 0.9%, to settle at $33.77 an ounce.
Traders and investors are more keenly focused on the negotiations among U.S. lawmakers and President Obama regarding the so-called “fiscal cliff” tax increases and spending cuts that are approaching. European and Asian stock markets, and the Euro currency were weaker overnight on the fiscal cliff worries. There is still a sense among many veteran politicos and market watchers that some type of deal will be reached soon to avoid the U.S. government going over the fiscal cliff.
The dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.25% on Wednesday.
In today's economic news at Wall Street, housing data pointed to a 0.3% decrease in October new home sales. The annualized rate of 368,000 fell short of expectations.
The Federal Reserve released its October Beige Book, which pointed to modest growth in seven Districts. Meanwhile, two Districts reported stronger growth while Boston, New York, and Philadelphia saw weak performance. The weakness in New York and Philadelphia was attributed to disruptions caused by Superstorm Sandy. Further, contacts in several regions expressed concerns over the uncertainty surrounding the ongoing budget debate.
At the MCX, gold prices for February delivery closed lower by Rs 328 (1%) at Rs 32,266 per ten grams. Prices rose to a high of Rs 32,640 per 10 grams and fell to a low of Rs 32,140 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed lower by Rs 404 (0.61%) at Rs 65,131/Kg. Prices opened at Rs 65,421/kg and fell to a low of Rs 63,976/Kg during the day's trading.

Gold Updates

Bullion metals ended lower at Comex on Tuesday, 27 November 2012. Gold prices ended lower for second straight day as the dollar headed up and a sort of debt deal was reached at Greece. Upbeat US data also took some shine away.

Gold for December delivery fell $7.3 (0.4%) to settle at $1,742.3 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.

On Tuesday, December silver fell 16 cents, or 0.5%, to settle at $33.98 an ounce.

In overnight trading, the European stock markets rallied only modestly on news that Euro zone leaders meeting in Brussels agreed late Monday to disburse fresh bailout funds to cash-starved Greece. Most market watchers had reckoned EU leaders would grant new monies to Greece. The world market place showed no significant reaction to the as-expected news on Greece.

A meeting to discuss Greece's finances wrapped up early Tuesday with Greece's institutional lenders reaching a deal to pave the way for Athens to receive almost 44 billion euros (almost $57 billion) of financial aid, while bringing its debt down to a sustainable level. The deal is expected to trigger another aid payment for the debt-struck country.

A heavy slate of U.S. economic data released Tuesday did show generally better-than-expected readings overall, and that put modest upside pressure on the U.S. dollar index, which in turn helped push gold and silver prices to their daily lows.

The dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.2% on Tuesday. The Euro currency also was initially supported on the Greece news but could not hold those gains as the day wore on.

In today's economic news at Wall Street, Consumer confidence rose in November to its best reading in more than four years. The latest consumer confidence reading for November came in at 73.7, while market expected a reading of 73.0. The Conference Board said its consumer confidence index rose to 73.7 in November from 73.1 in October. That's above the 72.2 level forecast. The October reading was upwardly revised from 72.2.

Separately, the September Housing Price Index from the FHFA increased by 1.1%, which follows a 0.7% increase observed during the prior month. Also, the September Case-Shiller 20-city Home Price Index rose by 3.0%, while a 3.1% increase had been expected. This followed the previous month's increase of 2.0%.

Durable goods orders were unchanged in October, which was better than the 0.4% decrease that had been expected. Excluding transportation related items, durable goods orders increased in October by 1.5%, which was better than the 0.4% decrease that had been broadly anticipated. Prior month's reading was revised down to reflect an increase of 1.7%.

Traders and investors are also focused on the negotiations among U.S. lawmakers and President Obama regarding the so-called “fiscal cliff” tax increases and spending cuts that are approaching.

At the MCX, gold prices for February delivery closed lower by Rs 149 (0.45%) at Rs 32,594 per ten grams. Prices rose to a high of Rs 32,825 per 10 grams and fell to a low of Rs 32,550 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed lower by Rs 198 (0.31%) at Rs 63,536/Kg. Prices opened at Rs 63,877/kg and fell to a low of Rs 63,361/Kg during the day's trading.

Gold Updates

Gold after a sharp rally in the preceding two trading sessions cooled-off a wee bit owing to profit taking at higher levels.

However, going ahead the bias is likely to remain positive as long as Gold sustains above the short-term 20-day DMA - which is currently at Rs 31,000. On the upside, Gold can rally to Rs 31,450-odd levels.

For today, the Gold MCX December futures may face resistance around Rs 31,365-31,415-31,470. On the downside, Gold MCX may seek support around Rs 31,045-30,995-30,945.

The corresponding key levels for Gold Mini December futures are as follows - support at Rs 31,060-31,000-30,950, while face resistance around Rs 31,375-31,425-31,475.

Gold Updates

Gold came back in action today after the commodity had silent session for past two days as the hurricane Sandy thinned the trading in markets. However the metal may face resistances near $1735 levels as traders become cautious ahead of the US employment data due on Friday and the presidential election next week.

The metal surged above $1720 an ounce after data released showed that China's economy is finally regaining traction, although the recovery remains sluggish. China's manufacturing activity rose to an eight-month high in October, firming to a level marginally below expansion, according to survey released by HSBC on Thursday. The China Purchasing Managers' Index rose to 49.5 on a 100-point scale, showing improvement from HSBC's final PMI reading of 47.9 in September.

US December gold futures are trading gold futures are up $3 at $ 1722.1 per ounce on the Comex division of the New York Mercantile Exchange. Gold had climbed to near $1,800 an ounce in early October after aggressive stimulus measures announced by central banks including the US Federal Reserve and European Central Bank fuelled a rally.

In other metals, December silver futures were up 6 cents at $32.38 an ounce while December copper futures rose 2 cents to $3.53 per pound. Platinum for December delivery declined $2.70 to $1,574.30, while January palladium futures slipped $1.15 to $608.65 an ounce.

MCX December gold futures are trading flat at Rs 31110 per 10 grams today. It may face a stiff resistance near Rs 31150 levels.