comex gold intraday

Gold prices drifted lower yesterday, amid modest gain in the dollar, affected by 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.



International spot gold traded in the range $925.50 - $907.90 and last quoted at $915.00 ($920.00).



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



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.



Earlier, data from the US Labor Department last week had shown initial claims for unemployment benefits rose by 38,000 to 407,000 in the week ended March 29, their highest level since September 2005. The four-week average of initial claims rose by 15,750 to 374,500.



Continuing jobless claims also recorded a rise, by 97,000 to 2.94 million; the four-week average of continuing claims increased by 32,250 to 2.86 million.



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.



Federal Reserve Chairman Ben Bernanke, in testimony to Congress, had said that the outlook for US economic growth had worsened since January and the possibility of a recession could not be ruled out.

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.

Crude oil May in NYMEX closed $0.33 lower at $108.76, after trading in the range $109.64 - $107.64.

OPEC Secretary General Abdullah al-Badri on Sunday 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 $929.00 – $912.00 and closed at $918.70 ($926.30).



DGCX Gold June



TECHNICAL OUTLOOK (Intra-day)

GOLD (June) - Bullish above $ 922.00; bearish below $ 917.00

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