MCX Gold tumbles on profit booking, trend still positive
Mumbai-India (Oct 29) India gold futures declined due to profit booking on Tuesday and was seen trading down amid positive international fundamentals. However, technically the trend in the futures looks positive for the day. Meanwhile, Comex gold futures was also recorded a decline in the afternoon.
Gold futures for December delivery on India's Multi Commodity Exchange (MCX) was seen trading with a loss of 1.39% at Rs.30330 per 10 grams as of 14.41 IST on Tuesday.
Intra-day, support for the commodity is seen at 30000 and below that it may test level of 29800 while resistance is seen at 30750 and 310000 levels, according to Amrita Mashar, Research Analyst at Commodity Online.
Intra-day traders may take buy position near 30250 with the stop loss of 30000 for target near 30500 and 30700, analyst said.
Earlier in the morning the yellow metal prices in the global market hovered five week high amid expectations that US Central Bank may continue with its monetary stimulus program on weaker than expected economic data and recent US government shutdown.
In the international market, investors were seen awaiting FOMC statement which is scheduled to be released on Wednesday after a two day policy meeting which is expected to begin today.
Comex gold futures on electronic trading for December delivery was seen trading with a loss of $8.1 at $1344.1 per troy ounce as of 14.56 IST on Tuesday.
US data on Core Producer Prices Index, Core Retail Sales is scheduled to be released at 18.00 IST while The S&P/Case-Shiller House Price Index and Conference Board (CB) Consumer Confidence is expected at 18.30 and 19.30 IST on Tuesday.
A down beat in US industrial production may have support the yellow metal price movement in the global market on Tuesday.
US industrial production increased 0.6 percent in September following a gain of 0.4 percent in August. For the third quarter as a whole, industrial production rose at an annual rate of 2.3 percent. Manufacturing output edged up 0.1 percent in September following a gain of 0.5 percent in August, and increased at an annual rate of 1.2 percent for the third quarter, according to the data released by the Federal Reserve on Tuesday.
Meanwhile, US pending home sales declined for the fourth consecutive month in September, as higher mortgage interest rates and higher home prices curbed buying power, according to the National Association of Realtors.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, fell 5.6 percent to 101.6 in September from a downwardly revised 107.6 in August, and is 1.2 percent below September 2012 when it was 102.8. The index is at the lowest level since December 2012 when it was 101.3; the data reflect contracts but not closings, as per the data released on Monday.
The yellow metal fell19 percent in 2013 after rallying for 12 years on concerns that the US Central Bank would begin to taper its $85 billion monthly bond buying program if economy backs to its track.
