comex gold intraday

Gold bounced back yesterday, along with oil prices that rose to new record high, while the dollar weakened against the major currencies.



Crude oil prices were lifted higher by the weekly inventory update from US Energy Department released yesterday, which showed a surprise rise in the nation’s crude inventories. As per the report, US crude inventories declined by 3.2 million barrels during the week ended April 4. The broad expectation had been an increase in the stockpiles.



However, the International Monetary Fund (IMF) proposal to sell 403.3 metric tons of gold from its reserves, which is currently valued at more than $13 billion, weighs on the traders’ sentiments in the bullion.



International spot gold traded in the range $902.80 - $934.70 and last quoted at $933.80 ($915.00).



The Dollar remained vulnerable against major currencies. The pressure on the greenback persisted after the release of latest Housing and Employment data from the US.



The market is awaiting interest rate decisions by the European Central Bank and the Bank of England, both due on Thursday. While the ECB is widely expected to again leave its key interest rate on hold at 4%, the BoE is likely to lower its benchmark rate by another quarter of a percent from 5.25 percent.



Also, minutes from the Federal Open Market Committee meeting held in March gave a downbeat assessment of the US economy, leaving the possibility of further cuts in US interest rates intact. The minutes also showed that many board members believed a recession in the first half of 2008 was likely amid declining economic growth and financial market stress.



The National Association of Realtors’ (NAR) pending home sales index for February fell 1.9 percent to 84.6 from 86.2 in the previous month.



According to the release from US Labor Department on Friday, non-farm payrolls fell by an estimated 80,000 in March.



Also, the unemployment rate in the US rose to 5.1% in March, the highest since September 2005.

Crude oil May in NYMEX traded as high as $112.21, a fresh all-time high, and settled at $110.82 ($108.50).

OPEC Secretary General Abdullah al-Badri on Sunday had over-ruled an immediate hike in the OPEC oil output. He also played down the chances that OPEC would hold an extraordinary meeting before its next scheduled gathering in September.

Medium term outlook (Spot Gold)

Weak below $952; supports are $928, $908, $888; resistances $969, $990.



Last day DGCX Gold June traded in the range $906.70 – $939.50 and closed at $937.30 ($918.70).


DGCX Gold June

TECHNICAL OUTLOOK (Intra-day)

GOLD (June) - Bullish above $ 933; bearish below $ 928


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