comex gold intraday

Gold prices drifted lower yesterday, as moderate recovery in the Dollar brought about profit taking following the previous days’ rally. But firm oil prices remained supportive for the yellow metal.



International spot gold traded in the range $954.50 - $939.95, and last quoted at $947.40 ($953.50).



Dollar found some support in the report from US Labor Department released yesterday, which revealed that initial claims for state unemployment benefits fell 9,000 to 366,000 in the week ended March 22. However the four-week average of initial claims rose 1,750 to 358,000.



Also continuing claims for benefits fell 5,000, to 2.85 million for the week ended March 15. The four-week average of continuing claims rose 25,250 to 2.82 million.



The US economy grew at 0.6 % annual rate in the fourth quarter according to the Commerce Department estimate made public yesterday. This was as per expectations and consistent with the two previous estimates, but the slowest pace since 2002.



The Euro had gained in the previous day inspired by robust data from the Euro-zone’s two biggest economies.



Germany's Ifo institute reported that business confidence in the Europe's biggest economy rose for a third consecutive month. Also, French business sentiment rose unexpectedly in March, reaching its highest level so far this year, according to national statistics office INSEE.



The US Commerce Department reported on Wednesday that sales of new homes in the US fell to a 13-year low in February, dropping 1.3% to a seasonally adjusted annual rate of 590,000.



US consumer confidence index had fallen in March to 64.5 from a revised reading of 76.4 in February, according to a US Conference Board release on Tuesday.



But the report from National Association of Realtors released on Monday had shown that resale of homes rose 2.9% to a seasonally adjusted annualized rate of 5.03 million. The rise was above expectations, and the first in seven months.



Gold had corrected from record high levels reached earlier last week, along with oil, as the Dollar bounced back moderately from record-low levels versus the Euro after the Federal Reserve cut its benchmark interest rate by 75 basis points to 2.25 percent.



The latest rate cut has been the sixth since last September, and has made the reduction in the federal funds rate to 300 basis points, to the lowest point since late 2004. But many market participants and analysts had anticipated an even more severe cut by the Fed, a full 100 basis points, amid serious concerns regarding a recession in US economy.



Crude oil for May delivery in NYMEX settled at $107.26 ($106.21) a barrel, after trading in the range $105.03 - $108.22.



The latest weekly update by US Energy Department’s Energy Information Administration had said US crude stockpiles remained unchanged at 311.8 million barrels in the week ended March 21, while a rise of around 1.5 million barrels had been widely expected.



The economic worries and a nose-diving dollar had propelled spot gold to record an all-time high of $1030.80 a Troy ounce last week.



The Federal Reserve in a an unexpected move had cut its discount rate for direct loans to banks by 0.25 percent point to 3.25 percent, and launched a new discount window facility for primary dealers, in desperate moves to stabilize financial markets.



The emergency moves by Fed boosted speculations regarding the possibilities for more casualties in the widening US financial crisis.



Meanwhile, the US Commerce Department reported that the US trade deficit widened slightly in January, up 0.6% to $58.2 billion.



Medium term outlook (Spot Gold)

Bullish above $916; Resistances are $926, $932, $947, $954, $973, $984, $995, $1002, $1022, $1035, $1052; supports $896, $883. Further up-trend is expected above $954.60.



Last day DGCX Gold June traded in the range $958.80 – $945.80 and closed at $953.50 ($955.20).



DGCX Gold June


TECHNICAL OUTLOOK (Intra-day)

GOLD (June) - Bullish above $ 955; bearish below $ 949

MCXARUN
9994500540