MCX Gold sideways to bullish; traders eye FOMC minutes

MUMBAI-INDIA (July 30) The trend in gold futures for October delivery on India's Multi Commodity Exchange (MCX) looks sideways to bullish for the day and intra-day traders are advised to take buy position for the day.

“For intra-day, support for the commodity is seen at 27500 while resistance is seen at 28000. If prices break the level of 2800 then the prices are expected to extend their gains till 28200 level,” said Amrita Mashar, Research Analyst at Commodity Online.

MCX gold futures for October delivery was seen trading up by 1.32% at Rs.28240 per troy ounce as of 06.16 PM IST on Tuesday.

In the global market, the yellow metal was seen trading near five week high. Traders were awaiting for the results from a two day FOMC meeting which are expected Wednesday afternoon. Traders hope that the minutes may include clues whether US Federal Reserve cut its monetary stimulus or not.

Gold futures for December delivery on Globex platform of Comex was seen trading down by 0.58% at $1321.85 per troy ounce as of 05.58 PM IST on Tuesday.

In the United States, the Pending Home Sales Index, a forward-looking indicator based on contract signings, edged down 0.4 percent to 110.9 in June from a downwardly revised 111.3 in May, but is 10.9 percent higher than June 2012 when it was 100.0; the data reflect contracts but not closings, as per the data released by the National Association of Realtors.

Pending sales have been above year-ago levels for the past 26 months, and the pace in May was the highest since December 2006 when it reached 112.8.