Monday, December 31, 2012

Gold: Seeking direction in a directionless market


Last Updated : 31 December 2012 at 15:55 IST
MCX Gold has been trading in a narrow range today. And analysts expect the commodity to continue trading in the range as investors eagerly await the final fiscal cliff meeting scheduled for 9.30 PM IST.
“The trend is not clear...” said Manoj Kumar Jain; President Commodity & Forex Business, IndiaNivesh Commodities. “Investors are sitting in the sidelines.” said Renisha Chainani, Manager-Research, Edelweiss.
Every analyst that we talked to expect gold to continue with this trend for the rest of the day.
“Besides, it is the year-end.” reminded Renisha.
“The current uptrend visible is just a temporary phenomenon” said Manoj. “We are still not bullish on gold.”
Sell on high
"Investors may initiate a short position on MCX Feb gold at Rs 30850 with a stop loss of 30950. The contract has support at 30620 levels. Sell on high would be advisable." said Harshal Mehta, Technical Analyst with Nirmal Bang.
The fiscal cliff issue as of now remains unresolved.
"If people start seeing that on January 1st this problem still hasn't been solved ... then obviously that's going to have an adverse reaction in the markets," Obama said in a warning shot to Congress.
"The president's comments today are ironic, as a recurring theme of our negotiations was his unwillingness to agree to anything that would require him to stand up to his own party," House Speaker John Boehner volleyed back and was quoted by Reuters as saying.
Meanwhile, gold on the Comex for delivery on February 13, 2013 was seen trading at $1665.65, a gain of $ 9.7 or 0.59% as of 03.56 PM IST. Gold for delivery on the MCX for 05 February 2013 was seen trading at Rs.30724 as of 03.46 PM IST, a gain of 0.09% against the previous close.

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