MCX Gold steadies after Bernanke's testimony

MUMBAI-INDIA  (July 18) Gold prices at India’s Multi Commodities Exchange (MCX) witnessed a positive phenomenon. Gold for August delivery is trading around Rs 26414-26524 per 10 grams.

Ben Bernanke testified before the House Financial Services Committee on Wednesday and said that the economy has not reached a position where the QE measures should be phased out or curtailed. However, the QE phase out may occur in the later part of the year provided the incoming data is positive.

On COMEX, gold is trading down at $1,280 per troy ounce as of 03.35 A.M.

On Thursday trade, gold August contract rose to a high of 26524 Rs/10gm at 02.20 pm IST and is expected to trade negative in later session. For intra-day, support is now seen at 26250, 26100 levels and resistance at 26700 & 26870, analyst said.

In the evening session, euro zone current account surplus narrows and U.K. retail sales gain 0.2% in June may put pressure on gold prices. We expect MCX gold to trade with bearish bias.