Comex gold intraday

Gold prices were volatile overnight as traders weighed weak U.S dollar against drop in crude oil prices. Economic data released yesterday also failed to boost the precious metal in particular direction. The U.S Labor Department said on Thursday that jobless claims were soaring to new highs, while U.S. services activity showed a modest pick up in March, inching its way back toward growth territory in a stagnant economy.

International spot gold moved in the range of $908.7 and $889.3 and finished at $902.90 a troy ounce, down by 60 cents.

Gold for June delivery rose $9.40 to end at $909.60 an ounce on the New York Mercantile Exchange.

Initial claims for the week ended March 29 rose by 38,000 to reach 407,000, marking the highest level seen for this economic indicator since mid-September 2005. The four-week average of initial claims also rose, increasing by 15,750 to 374,500, and thus hit the highest since the beginning of October 2005.

Continuing jobless claims were also elevated in the latest week. For the week ended March 22, continuing claims rose by 97,000 to 2.94 million -- the highest since the middle of July 2004. The four-week average of those claims also climbed, rising by 32,250 to hit the 2.86 million mark, the Labor Department's data showed. That was the highest since the mid-September 2004.

The Institute for Supply Management reported that its March non-manufacturing composite index moved to a reading of 49.6 from 49.3 in February and 44.6 in January.

On Friday, much focus of the market men will be on the U.S government reports on nonfarm payrolls data for March.

Oil prices dropped overnight as traders booked profits at higher levels. Weak job data released yesterday has reignited the concerns over the health of U.S economy and demand from that country.



Light, sweet crude for May delivery settled $1, or 1%, lower at $103.83 a barrel. Brent crude on the ICE futures exchange closed $1.23, or 1.2%, lower at $102.52 a barrel.



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 $912.8 – $892.80 and closed at $909 ($906.60).





DGCX Gold June



TECHNICAL OUTLOOK (Intra-day)

GOLD (June) - Bullish above $ 906; bearish below $ 901

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