Euphoria over a U.S. economic recovery was cut short by a disappointing employment report that showed far slower jobs expansion than expected, and led investors to question the outlook for the world's largest economy.
According to the research firm, Gold and Silver are expected to trade lower today on account of strength in the US dollar index, as a stronger dollar makes dollar denominated commodities look expensive for holders of other currencies.
Gold: Spot gold prices gained more than 1 percent on Tuesday, as sharp decline in equities led to safe-haven buying in gold market. Gold touched an intra-day high of $ 1662.60/oz and ended its trading session at $ 1659.90/oz on Tuesday. MCX Gold June contract rose around 1.1 percent and hit an intra-day high of Rs. 28,678/10 gms yesterday.
China imported 39,663 kg of gold from Hong Kong in February which was up 20 percent from 32,949 kg in the previous month, according to the data from the Hong Kong Census and Statistics Department. The country imported around 72,612 kg of gold in the first two months of 2012, which was a sharp rise of 589 percent as compared to 10,540 kg in the same period a year ago. This also acted as a positive factor for gold prices. Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, declined to 1,286.17 tonnes by 10th April 2012, lowest in two and a half weeks.
Silver: Taking cues from rise in gold prices, spot silver rose around 0.8 percent on Tuesday. However, further gains were capped due to a stronger dollar index coupled with downside in base metals. The white metal touched an intra-day high of $ 31.92/oz and closed at $ 31.78/oz yesterday. On the MCX, Silver May contract gained by 0.7 percent and hit an intra-day high of Rs. 56,400/kg on Tuesday.
Outlook: We expect gold and silver on the international markets to trade lower today on account of strength in the US dollar index, as a stronger dollar makes dollar denominated commodities look expensive for holders of other currencies. Silver will also take cues from downside in base metals. However, a weaker Rupee may cushion further decline on the domestic bourses.
gold prices target resistance april 11 2012
Meanwhile, gold resistance point today is at $ 1,662.90, Alternative "Buy" can be done if prices penetrate the resistance point to the target $ 1,669.60 (short), $ 1,674.80For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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