MCX Gold Trend - MCX Gold was seen unchanged on Friday but seen largest weekly decline due to American Federal Reserve decision for encouraging string of US economic data. The MCX gold fell 1% after gold consumer India said that import duties on bullion will be doubled. Some factors like Oil rally, dollar's weekness and higher US consumer prices caused investors to cover short positions from earlier this week. Gold trade might have exited by some funds after the S&P 500 stock touches 1400 for first time in four years after a decent pace of economic recovery was confirmed in US due to US job and Manufacturing data. Gold's 3% slide removed gains in January on expectations of further US monetary easing. Few clues were given by FEB to keep rates near zero for few upcoming years.
With bullion trading well below its long term technical support there is possibility that gold could extend losses in short term before recovering. Spot gold improved by 0.1% at USD 1,656.54 an ounce. US April gold futures ws settled down USD 3.70 at USE 1,657.70 an ounce. Preliminary reuters data showed that volume ws largely in line with its 30 day average but was lower than previous session. The US inflaton figures for February indicates that consumer prices rose most in 10 months as the cost of gasoline spiked but was little sign that underlying inflation pressure were building up.
MCX Gold Tips
Sell Gold--27840-50 Stop Loss -- 27901-- target- 27800-27850-27700-27750-27600-27500-2700-26993 hold for 3 days
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