Market Update

Market Watch

Tuesday, 9 July 2013

Mcx Commodity Gold News for Today

Gold extended a rebound to a second day on Tuesday after breaking through a key technical level and as China inflation data boosted its appeal as a hedge against rising prices in the world's second-biggest buyer of the metal.

Bullion came under renewed pressure late last week as a strong US jobs report raised fears of an early end to the US Federal Reserve's bond buying stimulus which was seen as stoking inflation.

But it rose 1 per cent on Monday after the dollar eased from three-year highs and on some bargain hunting.

Spot gold rose 1.2 per cent on Tuesday to $1,250.86 an ounce by 0301 GMT. It may keep rising to $1,261 per ounce, according to Reuters technical analyst Wang Tao.

"There was some resistance at around $1,245 - that's the level we were at before the non farm payroll data came out. Since we broke through that resistance, gold is shooting up," said a trader in Hong Kong.

The trader also said China continued to show buying interest as prices were near three-year lows.

Comex gold rose about $15 to $1,249.40. Bullion has fallen nearly 10 per cent since Fed Chairman Ben Bernanke said last month the economy was recovering strongly enough for the US central bank's $85 billion monthly bond-buying stimulus to be reduced as soon as later this year.

Gold for immediate delivery fell to $1,180.71 on June 28 to its lowest since August 2010.

Technical View

GOLD (Aug)
Trend: Consolidate  | Strategy: Sell on high
R1- 26250, R2- 26780 | S1-25850 , S2- 25580
Trend: Consolidate  | Strategy: Sell on high
R1- 41270, R2- 42450 | S1-39150 , S2- 37500

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