India, US Gold futures neutral, firm data continues to weigh

Mumbai-India (Dec 13)   Gold futures failed to sustain at higher levels on Friday and was seen trading neutral amid bearish international cues. US gold futures steadied on Friday after a sharp drop in the previous session on firm US data. Positive data has raised concerns that US Federal Reserve may start reducing its monetary stimulus soon. US gold futures for February delivery on electronic platform was seen trading flat at $1225.1 per troy ounce as of 15.16 IST on Friday.

Gold futures for February delivery on India's Multi Commodity Exchange (MCX) was seen trading neutral at Rs.29217 per 10 grams as of 14.52 IST on Friday.

Technically, the trend in MCX gold futures for February delivery looks sideways to bearish and intra-day traders are advised to sell on rise for the day.

Intra-day support for the commodity is seen at 29000 and 28700 levels while resistance is seen at 29350 and 29550 levels, according to Amrita Mashar, Research Analyst at Commodity Online. Intra-day traders may take sell position near 29250 with the stop loss of 29350 for the target near 29100 and 28950.

Holdings in SPDR Gold Trust, declined to the highest in nearly two months on Thursday. The fund has not recorded inflows over a month. Gold futures remained gains and losses on firm US data and short covering.

The US Census Bureau announced on Thursday that advance estimates of retail and food services sales for November were at $432.3 billion, an increase of 0.7 percent from the previous month, and 4.7 percent above November 2012. Total sales for the September through November 2013 period were up 4.1 percent from the same period a year ago.

Gold prices may average $1294 an ounce in 2014, said Bank of America Merrill Lynch, media reported.