April 07, 2011

India gold gains on Euro debt crisis

Gold gained and settled at +0.02 at 21166 as the appeal of the precious metal was boosted by lingering concerns over inflation, mounting fears over the euro zone’s sovereign debt crisis and as widespread unrest continued in the Middle East and North Africa.

Today market look to trade steady ahead of an expected euro zone interest rate hike, while silver barely moved after rising to its highest in more than three decades in the previous session on lingering worries about inflation.

The European Central Bank is poised to raise interest rates from a record low 1.0 percent on Thursday and more is likely to follow but, fearful of heaping more pain on the euro zone's stragglers, it will give few clues about when the next move will come.

Now technically market is trading in the range as RSI for 18days is currently indicating 55.36, where as 50DMA is at 21061.44 and gold is trading above the same and getting support at 21115 and below could see a test of 21063 level, And resistance is now likely to be seen at 21226, a move above could see prices testing 21285.

Trading Ideas:

Gold trading range is 21063-21285.
Gold gained as the dollar fell to a 14-month low against the euro ahead of an expected interest rate hike from ECB
Gold looks to take support at 21115 and resistance at 21226.
Spdr gold trust holdings fell by 7.28 tonnes to 1205.47 tonnes

Source: www.commodityonline.com

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