Strong resistance for gold seen at Rs 30920 for the day

Last Updated : 14 January 2013 at 19:40 IST

Strong resistance for gold seen at Rs. 30920 for the day Source :Commodity Online Research Desk

Intra-day traders are advised to buy gold February futures around Rs. 30700-30680 with stop loss of Rs. 30600 and wait for the target near Rs. 30850.

By Ankush Kumar Jain
Gold futures for February contract on India’s Multi Commodity Exchange (MCX) is expected to have crucial support at Rs. 30600 and next downside momentum in gold prices would occur only below Rs. 30600. Strong resistance for gold seen at Rs. 30920 for the day.

Intra-day traders are advised to buy gold February futures around Rs. 30700-30680 with stop loss of Rs. 30600 and wait for the target near Rs. 30850.

Gold futures on MCX were slightly up by 0.07 percent at Rs.30812 per 10 gram as of 07.18 PM IST on Monday.

Meanwhile, industrial production in Euro-zone fell by 0.3%. The total output of Euro zone factories fell for the consecutive month in November according to the data released by the Euro Stat. This may prove to be helpful for Gold.

Gold futures on COMEX were trading at $1671.35 a gain of $10.75 or 0.65% as of 07.31 PM IST.

In the meantime, the White House said that it is not minting a “$1 trillion coin,” and is not negotiating with Congressional Republicans on raising the debt ceiling.

“There are only two options to deal with the debt limit, Congress can pay its bills or it can fail to act and put the nation into default,” said White House spokesman Jay Carney.

Some congressional Republicans say they will not support an increase in the soon-to-expire $16.4 trillion debt ceiling unless there are corresponding cuts in federal spending, says a report in USA Today. (Ankush Kumar Jain is Research Analyst, Commodity Online)

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