Festive season, supportive macros: India Gold perched above 30,000
Mumbai-India (Oct 24) Festive season, supportive macro fundamentals have pushed India gold futures above Rs 30,000 per 10 grams this week at India's Multi Commodity Exchange (MCX).
Dollar which declined to a two-year low against the Euro also provided the much needed momentum for international gold prices to move up, analysts said. The U.S. currency weakened versus most major peers before a report on Thrusday that is likely to report continuing jobless claims in the U.S.to rise.
The trend in gold futures for December delivery on India's Multi Commodity Exchange (MCX) looks sideways to bullish for the day. Intra-day traders are advised to use buy on dip strategy.
"For intra-day, support for the commodity is seen at 30000 and below that it may test level of 29800 while resistance is seen at 30300 and above that it may test level of 305000,"said Amrita Mashar, Research Analyst at Commodity Online.
"One can enter into buying side near 30150 with stop loss of 30000 for target near 30300 and 30500," she added.
MCX Gold futures for December delivery was seen trading up by 0.38% at Rs.30285 per 10 grams as of 13:49 hrs IST on Thursday. International markets are looking quite supportive for Gold futusre and which may also support prices at MCX. INR appreciation likely to give some weakness to Gold prices at MCX but overall Gold is expected to perform in green region for the day.
Gold futures for December delivery on Globex platform of Comex was seen trading up by 0.10% at $1340.6 per troy ounce at 13.28 hrs IST. Spot Gold is slightly up at $1336.40 an ounce in 4.14 hrs New York Time.
China Manufacturing PMI is at seven month high while US jobs data proved to be bullish for gold- U.S. employers added fewer jobs in September than economists had estimated, spurring bets the Fed may maintain its $85 billion monthly bond purchases. On the other hand, gold premiums in India to London prices rose above $100 per ounce recently while festival demand is supportive of the yellow metal amidst bullion shortage reported by traders.
Some analysts said that a long term bull trend is expected to start in Gold if the prices breach Rs 30290 levels. The next targets will then emerge at Rs 30500 per 10 grams
