MCX Gold moves up slightly, may continue to trade bearish on weak cues

Mumbai-India (Dec 27)   India gold futures rose marginally on Thursday and was seen trading slightly up. However, still the yellow metal trend looks sideways to bearish. Gold futures for February delivery on India's Multi Commodity Exchange (MCX) was seen trading with a gain of 0.28% at Rs.28538 per 10 grams as of 16.02 IST on Thursday.

Technically, the trend in MCX gold futures for February delivery looks sideways to bearish for the day and intra-day traders are advised to sell on rise. For intra-day, support for the commodity is seen at 28300 and 28000 levels while resistance is seen at 28650 and above that it may test level of 28800, according to our analyst at Commodity Online.

Intra-day traders may take sell position near 28450 with the stop loss of 28600 for the target near 28200 and 28100.

US gold was seen trading steady above $1200 per troy ounce on Thursday amid weak market cues. US gold futures for February delivery was seen trading with a gain of $2 at $1205.3 per troy ounce as of 16.19 IST on Thursday.

Gold is moving for a near 30% decline in 2013. Gold tumbled 28 percent this year, set for the worst annual drop since 1981, as equities rallied and the Fed said it will cut monthly asset purchases to $75 billion from $85 billion.

Analyst expect that gold could end up below $1200 as the year draws to a close as Fed Reserve reduced bond buying by $10 bn per month on improved prospects for the US economy.

Meanwhile, platinum prices have gained significantly on fall in gold prices as the announcement of Fed tapering by $10 bn a month has signalled economic recovery that in turn will boost demand for industrial precious metals.

Platinum, palladium and silver has industrial uses unlike gold and hence the news of Fed tapering is quite positive for industrial precious metals, analysts said. US Platinum Futures for January delivery rose to $1342.1 per ounce in electronic trading on Thursday.