comex gold intraday

Gold prices recovered moderately yesterday following Tuesday’s sharp fall, as the dollar fell against major currencies after Federal Reserve Chairman Ben Bernanke said the US economy might contract in the first half of the year. Crude oil futures regaining the bullish momentum also aided the bullion prices.



International spot gold finished $20.4 higher at $903.5 a troy ounce after tossing in the range $905.3 - $881.60.



Gold for June delivery gained $12.40, or 1.4%, to finish at $900.20 an ounce on the New York Mercantile Exchange.



In testimony to Congress, Bernanke said that the outlook for U.S. economic growth has worsened since January and that the possibility of a recession cannot be ruled out.

Among the economic data released yesterday, the US Commerce Department report showed orders for US-made factory goods for the month of February fell by 1.3%, while shipments dropped 2.1.

The ADP employment report showed that private sector jobs rose by 8,000 in March.

Oil prices in the international markets bounced back after the US energy department said that gasoline and distillate stockpiles fell more than expected. However, US crude inventories rose by 7.4 million barrels to 319.2 million barrels in the week ended March 28.

Light, sweet crude for May delivery on the New York Mercantile Exchanger settled at $104.83 a barrel, up $3.85, or 3.8%.

The Dollar had risen sharply in the previous day, supported by Institute for Supply Management's manufacturing index that recorded an unexpected rise, to 48.6% in March from 48.3% in February.



The weakness in Euro following an unexpected slump in German retail sales and announcement of write-downs by two of Europe's largest banks also encouraged the sentiments in the greenback.



Swiss banking giant UBS and the Deutsche Bank disclosed a combined $23 billion of write-downs for the first quarter, ahead of their scheduled first-quarter earnings announcements. The move raised concerns about European exposure to the US sub-prime mortgage crisis.



According to preliminary data from the German Federal Statistics Office, retail sales slid by 1.6 percent in February compared with January, the largest drop in nine months, and by 0.3 percent on an annual basis.



As per the US Commerce Department release on Friday, inflation moderated in February, with consumer prices rising just 0.1% for the month.



The report from US Labor Department released on Thursday 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 on Thursday. This was as per expectations and consistent with the two previous estimates, but the slowest pace since 2002.



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 $885.70 – $907.20 and closed at $906.60 ($885.70).



DGCX Gold June



TECHNICAL OUTLOOK (Intra-day)

GOLD (June) - Bullish above $ 904; bearish below $ 898

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