Gold Outlook 6th Jan

U.S. gold slipped 2 percent on Monday as Strong dollar and by a planned U.S. stimulus plan despite oil rose 5 percent as Israel deepened its thrust into Gaza on the 10th day of violence.

Investors welcomed news that U.S. President-elect Barack Obama is seeking as much as $310 billion in tax cuts as part of a proposed stimulus package that could be worth up to $775 billion and supported the dollars movements.

U.S. Dollar rose against the euro yesterday supported by a planned U.S. stimulus package and increased expectations of interest rate cuts by major central banks other than the Federal Reserve.

At the same time the U.S. Census Bureau said that construction spending was at an annual rate of $1.0784 trillion in November, down .6% from October's pace and down 3.3% from a year ago.

International spot gold traded in the range $ 883.55- $ 843.50 a Troy Ounce and last quoted at $858

Weekly Outlook (DG. OCT.)

Expected trading range is $892- 854, breaking of either side will make the direction. Resistances are $906, $917, $935. Supports are at $844, $831, $820

Last day DGCX Gold FEB. Traded in the range $874.60-$844.80and closed at $ 859.50

TECHNICAL OUTLOOK (Intra-day)

GOLD (FEB) - Bullish above $ 862 bearish below $ 856


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