Firm global cues lift India Gold futures, US data awaited
Mumbai-India (Oct 28) India gold futures recorded an up-tick on Monday tracking a firm trend in the global market. US gold futures was seen hovering five week high amid expectations that US Central Bank may continue with its monetary stimulus program. Fed policy setting committee is scheduled to release its statement on Wednesday after a two day policy meeting and bullion traders may get clues for their trading from the data released.
Gold futures for December delivery on India's Multi Commodity Exchange (MCX) was seen trading with a gain of 0.38% at Rs.30844 per 10 grams as of 13.12 IST on Monday.
Technically, the trend in MCX gold futures for December delivery looks sideways to bullish for the day and intra-day traders are advised to buy on dips. Intra-day support for the commodity is seen at 30600 and below that it may test level of 30500 while resistance is seen at 31000 and 31200 levels, according to Amrita Mashar, Research Analyst at Commodity Online.
Intra-day traders may take buy position near 30750 with the stop loss of 30600 for the target near 30900 and 31000, she said.
However, MCX silver for December delivery was seen trading slightly down by 0.14% at Rs.49640 per kilogram as of 13.35 IST on Monday.
Festive and wedding season demand may have supported the yellow metal price movement in India at futures market. Generally, demand for gold rises with the advent of festive and wedding season in the country.
The US Federal Reserve is scheduled to release its data on US industrial production at 18.45 IST today. A higher than expected data may put pressure on bullion prices in the global market to some extent.
US National Association of Realtors (NAR) is scheduled to release its data on monthly pending home sales at 19.30 IST while The Dallas Fed Manufacturing Business Index is expected at 20.00 IST on Monday.
Gold prices in the global market declined 19 percent this year on concerns that the US Central Bank may reduce its $85 billion bond buying program as the economy improves.
Holding at SPDR Gold Trust declined 4.50 tons to 872.02 tons on Friday. Meanwhile, Russian gold reserves declined around 0.37 tons to 1,015.1 tons in September as Russia cut holdings for the first time since September 2012, according to a data by International Monetary Fund.
Gold futures for December delivery on Globex platform of Comex was seen trading with the loss of $3.6 at $1348.9 per troy ounce as of 13.48 IST on Monday.
