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| No major upside from current level |
| B G Shirsat / Mumbai Sep 05, 2010, 00:23 IST |
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Gold prices fell on Friday after better-than-expected US jobs data. Gold for December delivery fell $2.30 to $1,251.10 an ounce at the Comex division of the New York Mercantile Exchange.
The metal traded as high as $1,255.60 on Friday and slipped to a low of $1,239.20. Gold futures recovered sharply from the day’s low on buying by bargain-hunters. The US dollar index has also weakened and is trading near its daily low, which is boosting prices. The bullish technical posture is also limiting selling pressure.
As expected, gold posted a weekly gain of $13.20, or 1.1 per cent, to close at $1251.10 on strong buying from investors. It is expected to move around $1265.75, according to the price projection using time-price opportunity (TPO) charts and likely to get volume-based support at $1230.25. Sell trades in the $1260-strike call options and the $1,240-strike put options indicate the precious metal is likely to move in a narrow range next week. The technical support for gold is seen at $1233.50 and resistance above $1256.60.
Gold October futures is expected to get support at Rs 18,800 with higher-level resistance at Rs 19,300, based on price projection using the weekly TPO data on the Multi Commodity Exchange. India’s slew of festivals are expected to ignite buying. On an average, the gold price rises 2.5 per cent in September, which will take it to $1,285 an ounce.
Hedge-fund managers and other large speculators increased their net-long positions in New York gold futures in the week ended August 31, according to US Commodity Futures Trading Commission data.
Speculative long positions outnumbered short positions by 2,38,077 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 16,886 contracts from a week earlier Miners, producers, jewellers and other commercial users were net-short 2,84,561 contracts, an increase of 20,261 from the previous week.
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