comex Gold Outlook

US Gold futures fell yesterday despite weak dollar and strong crude prices, and ended nearly 2 percent lower due to the liquidation pressure as the tight credit market. Deteriorating global economy and weaker equities, investors cut riskier assets also weighed on gold prices.

Dollar fell against the euro on yesterday after weekly data showed a sharp jump in initial U.S. jobless claims. According to the report, the number of U.S. workers filing new claims for jobless benefits rose last week to 516,000, the highest level since the weeks following the Sept. 11, 2001 attacks. At the same time The U.S. federal government posted a record high $237 billion budget deficit in the month of October.

China's stimulus packages also failed change the view of the economy. China launched an economic stimulus package on Sunday worth nearly $600 billion for supporting ailing economy. This plan is for 2 years and Funds from the stimulus package will be spent in ten major areas that include low-income housing, rural infrastructure, water, electricity, transportation and improvements in the environment. And also expected it will improve the current global economic condition by improving the domestic demand.

International spot gold traded in the range $736.75 - $700.25 a Troy Ounce and last quoted at $734.30

Weekly Outlook (DG. OCT.)

Expected to trade within the range $761.80 to $727, breaking of either a side makes the direction, Resistances are $745 $762, $778, Supports seen at $717, $707 and$ 683.

Last day DGCX Gold Dec. traded in the range $725.1– $699and closed at $719

TECHNICAL OUTLOOK (Intra-day)

GOLD (Dec) - Bullish above $ 719.50 bearish below $ 715.50

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