comex gold outlook

After a fierce rally on Wednesday, Gold ended lower yesterday as the profit booking and a broad surge with stocks on news Treasury Secretary Henry Paulson is talking about a Resolution Trust Corp-type solution to the current financial crisis.

According to the U.S. Federal Reserve, it would expand its reciprocal currency agreements to $180 billion, boosting its existing swap lines with the European Central Bank and Swiss National Bank and setting up new currency swap arrangements with the Bank of Japan, Bank of England and Bank of Canada.

At the same time the U.S. Labor Department said that jobless claims were up 10,000 last week to 455,000, more than expected and influenced by Hurricane Gustav.

Initial claims for state unemployment insurance benefits rose to a seasonally adjusted 455,000 during the week ended Sept. 13 from 445,000 the prior week. Analysts polled by Reuters had forecast claims to drop to 440,000 last week.

Meanwhile, the number of continued claims unexpectedly fell by 55,000 to 3.48 million in the week ended Sept. 6, the most recent week for which that data is available, after an increase of 129,000 the prior week.

But analysts had expected continued claims to be almost unchanged from 3.53 million in the week ended Aug. 30, which was the highest reading since October 2003.

At the same time according to the U.S. Labor Department, the consumer price index was down .1% in August and up 5.4% from a year ago, as expected. Excluding food and energy, prices were up .2% in August and up 2.5% from a year ago.

In a report, the U.S. trade deficit swelled to $62.2 billion, the largest since March 2007, from an upwardly revised estimate of $58.84 billion in June. Wall Street analysts had forecast the deficit to expand to $58.0 billion from the original June tally of $56.8 billion.

International spot gold traded in the range $902.60 - $841.7005a Troy Ounce and last quoted at $847.25.

Weekly Outlook (DG. OCT.)

More selling pressure expecting below $789.30 .Resistances are $798, $811, $820. Supports are $779, $772.20, and $745.if sustain above $820, expecting more uptrend

Last day DGCX Gold Dec. traded in the range $920.40– $857and closed at $868.20

TECHNICAL OUTLOOK (Intra-day)

GOLD (Dec) - Bullish above $880 bearish below $ 875.60


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