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Monday, October 22, 2012

Spot Gold prices expected down october 2012

Spot Gold prices expected down october 2012 : Spot Gold bullishness only above USD 1803. Gold Prices closed in negative for the second consecutive week as expected. Now on sustaining below USD 1715, prices are expected to decline further towards supports at USD 1662.4-1662.5.

International gold futures closed higher, for the first time in 3-sessions, recovering a fraction of the heavy losses sustained at the end of previous week as traders awaited the outcome an upcoming Federal Reserve meeting on US monetary policy. However, prices in the Indian market declined & closed in negative, due to stronger local currency against the US dollar. Gold holdings of SPDR gold trust, the largest ETF backed by the precious metal, increased to 1,336.9 tons, as on Oct. 22. Silver holdings of ishares silver trust, the largest ETF backed by the metal, increased to 9,888.55 tons, as on Oct, 18. Moody’s Investors Service cut Japan’s credit rating one level to Aa3 in August last year, citing a build-up in government debt since the 2009 global recession.

The dollar index, which measures the US unit against a basket of six major currencies, erased earlier losses to trade at 79.653 from 79.629 in North American trade late Friday. The euro area’s 500bn Euro ($652bn) bailout fund faces another test, as the European Union’s highest court weighs claims that the firewall violates EU law and should be banned in its current form. Copper declined to a six-week low on COMEX, after a report signaled declining economic growth in Japan and Caterpillar Inc's forecast of sales growth at the slowest in 4-years, fanning concern that a global slump may reduce demand for the metal. Copper futures for Dec. delivery closed down by 0.4% at $3.622 on the COMEX division of the NYMEX.

Brazilian mining company Vale said, that it will shutter the Frood nickel mine in Canada by the end of 2012 as the sluggish global economy has reduced demand and prices have been continuously declining. LME aluminum stocks rose by to 5.06mn tons, close to the record of 5.13mn touched in February. Crude oil prices declined for the fifth straight session, on concerns about slowing economies, expected production & pipeline restarts and bigger-than-expected fall in Japan's exports reflecting the global economic slowdown. Natural gas futures closed in negative for the first time in 4-sessions, pressured by profittaking after an early rally to a new 2012 high and reports of extended forecasts for cold weather had been revised to slightly milder.

Technical Alerts:

Gold Prices now holds strong support at 30570 (100-day SMA) and last at 29670 (200-day SMA). Prices closed marginally higher for the second consecutive week & on charts resistance holds at 31515… trend is expected to turn up only if the given level is breached OR else prices will consolidate & decline further towards the long-term SMA’s discussed above.

Spot Gold Bullishness only above $1,803. Prices closed in negative for the second consecutive week & has breached our support of $1,736 & also tested 50-day SMA, as expected. Now on sustaining below $1,715, prices are expected to declined further towards supports at $1,662.4 (200-day SMA), $1,662.5 (100-day SMA).

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