Bullion

Gold declined on Thursday as weakness in US stocks and strong dollar pressured the prices. The volume of trade remained low ahead of holidays. Gold futures for February delivery at COMEX shed $8 to close the session below $800 an ounce. The contract saw the highs of $807.60 an ounce during the session.

Gold was unable to sustain at higher levels despite the fact that Job less Claim data came positive for the prices. Investors sold the metal to book profits from a rally in the metal this year. Silver and platinum also dropped.

Any declines in gold will remain a chance to bargain hunting f bargain hunting as some investors seek a haven from concerns about the health of the banking system after the collapse of the U.S. subprime-mortgage market.

Gold will likely trade in a USD790-USD815/oz range for the next few sessions but has good potential to rally in the new year, when traders return to their desks as gold is still having a potential to go up on major concern over US Dollar.

MCX Gold Feb
Technical Outlook:

Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from over bought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 18-day moving average. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Gold Feb: buy at 10220-230 for the target of 10275 and 10318 with stop loss at 10181

MCX Silver Mar
Technical Outlook:

Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from over bought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 18-day moving average. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Silver March: buy 50% at 18850 &more @ 18680 for the target of 19071 and 19220 with stop loss at 18500


The U.S. Commerce Department said that U.S. GDP was up an annual rate of 4.9% in the third quarter, the best performance in four years. From one year ago, real GDP was up 2.8% in the third quarter, the same as last month's estimate.

The Conference Board said today that the index of leading indicators were down .4% in November with three of the ten indicators showing positive gains.

The U.S. Labor Department said that jobless claims were up 12,000 last week to 346,000.

MCXARUN