future gold outlook

U.S. gold futures declined from 6 weeks high and closed slightly lower as oil tumbled in the international market.

U.S. crude oil futures settled lower yesterday as demand worries after a government report showed the U.S. economy shrank more severely during the third quarter than initially estimated.

According to the U.S. Commerce Department, real GDP decreased at an annual rate of -.5% in the third quarter, down from the previous estimate of -.3%, as expected.

But the dollar continued its weakness against the major currencies yesterday as the expectation of diminished demand in dollar as safe heaven. New U.S. measures to boost consumer lending helped ease concerns about the financial crisis, and changed the view in dollar. The US GDP also influences the dollar movements.

According to the World Gold Council, Global demand for gold jumped 18 percent year-over-year to 1,133.4 tonnes in the third quarter, reversing a weaker trend earlier this year, because of strong buying by investors and a lower gold price.
International spot gold traded in the range $ 830.1– $ 801.80 a Troy Ounce and last quoted at $820.70

Weekly Outlook (DG. OCT.)

Continuation of the bullish movements expected above $816.Resistances are $829 $849, $869,913 Supports seen at $802, $771, $754.

Last day DGCX Gold FEB. Traded in the range $832.2-803 and closed at $ 816

TECHNICAL OUTLOOK (Intra-day)

GOLD (FEB) - Bullish above $ 819.50 bearish below $814


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