Gold tumbles to three week low amid mixed market sentiments
Mumbai-India (Nov 1) Gold fell to three week low amid firm China data and despite recent US Central Bank's decision to continue with its monetary stimulus program. Mixed market sentiments may have put pressure on the yellow metal prices to certain extent in the global market. Comex gold for December delivery on electronic platform was seen trading with a loss of $2.2 at $1321.5 per troy ounce as of 14.48 IST on Thursday.
Meanwhile, India gold futures was seen trading slightly up. Technically, the trend in gold futures for December delivery on India's Multi Commodity Exchange (MCX) looks sideways to bullish for the day and intra-day traders are advised to buy on dips.
Intra-day support for the commodity is seen at 29700 and below that it may test the level of 29500 while resistance is seen at 30300 30500, according to Amrita Mashar, Research Analyst at Commodity Online.
Intra-day traders may take buy position near 29900 with the stop loss of 29700 for the target near 30100 and 30300, she added.
MCX gold for December delivery was seen trading with gain of 0.21% at Rs.29857 per 10 grams as of 14.44 IST on Friday.
India's manufacturing activity shrunk for a for third month in October a survey said on Friday. Unchanged from September’s 49.6, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) indicated a third, albeit marginal, successive deterioration of business conditions across India.
China purchased more than 100 tons of gold from Hong Kong for a fifth consecutive month in September supported by firm demand for the metal.
Output at manufacturing plants in China increased for the third month running in October, and at the quickest pace since April.
The HSBC China Purchasing Managers’ Index (PMI)- a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy-reported at 50.9 in October, unchanged from the earlier flash reading, and up from 50.2 in September. Though only slight, it was the strongest improvement of operating conditions in China’s manufacturing sector in seven months.
Also, China's official PMI reported at 51.4, the highest in 18 months, according to the data released by China Logistics Information Center earlier today.
