India Gold bearish, US Gold near 5 month low on tapering fears

Mumbai-India (Dec 3)   India gold futures was seen trading neutral amid weak international cues while US gold futures was seen near five month low after firm US data releases sparked the concerns that US Federal Reserve may start reducing its monetary stimulus later this month.

Gold futures for February delivery on India's Multi Commodity Exchange (MCX) was seen trading with a loss of 0.11% at Rs.30099 per 10 grams as of 15.30 IST while Comex gold futures for February delivery on electronic platform was seen trading with a loss of 4 cents at $1221.5 per troy ounce as of 15.42 IST on Tuesday.

Technically, the trend in MCX gold futures for February delivery on looks sideways to bearish for the day and intra-day traders are advised to sell on rise. Intra-day, support for the commodity is seen at 28700 and below that it may test level of 28500 while resistance is seen at 29000 and 29200, according to Amrita Mashar, Research Analyst at Commodity Online.

Intra-day traders may take sell position near 29850 with the stop loss of 29000 for the target near 28700 and 28600.

Asian physical demand for gold rose on Tuesday as a result of sharp overnight fall in prices.

In the global market, gold fell 27% in 2013, reaching a 34-month low of $1,180.50 in June, on concerns that the Federal Reserve would start tapering its monetary stimulus. Data on US GDP and nonfarm payrolls is scheduled to be released later this week and traders try to gather clues for their trading from the data released.

In November, US Mint sales of American Eagle silver coins declined 27 percent year-on-year basis, while the Perth Mint's gold bars and coins sales declined.

Meanwhile, Turkey's gold imports reached 19.2 metric tons in November this year, a rise of 16.8% when compared to the 15.98 metric tons recorded in October, according to the latest data released by Borsa Istanbul, the exchange operator in Turkey.