Commodities » Precious Metals

Spot gold prices declined on Wednesday to close at $1184/oz.

Contributed by Angel Broking

By Mr. Naveen Mathur, Reena Walia Nair (Angel Broking)

MARKET RECAP

Spot gold prices declined on Wednesday to close at $1184/oz, after gaining marginally in the earlier session. However, the August futures contract on the Comex as well as on the MCX ended in the green, reflecting that demand for the yellow metal still remains attractive. Gold prices touched a two month low of $1175/oz on Tuesday, but later gained marginally as low prices attracted investors towards the yellow metal. After making significant returns this year, inevitable profit booking at the higher levels is exerting pressure on the prices. However, concerns over the Euro zone crisis which continue to prevail coupled with other global economic issues are supporting the prices on the downside.

OUTLOOK

Global financial markets are expected to trade with a negative bias today. Risk aversion in the financial markets will lead to higher demand for the DX. Gold prices would trade with a negative bias today as the stronger DX will cap gains in the yellow metal prices. However, any negative news from the global front may drive demand for gold on the back of a traditional safe-haven investment.

On intraday basis, Spot Gold prices have immediate support at $1179/$1173 whereas resistance is seen at $1194/$1203. Spot Silver prices shall find support at $17.56/$17.35 whereas resistance is seen at $17.93/$18.09 levels.