DGCX Gold Outlook 3rd Feb, 09

U.S. gold futures settled more than 2 percent lower yesterday, holding just above $900 an ounce on a combination contract rollover, technical selling and signs of weak jewelry demand.

At the same time, world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its bullion holdings held steady at record 843.59 tonnes as of Jan. 30

The U.S. Census Bureau said that construction spending was at an annual rate of $1.054 trillion in December, down 1.4% from November's pace. For all of 2008, construction spending totaled $1.079 trillion, down 5.1% from a year ago.

The Institute of Supply Management's index of manufacturing increased from 32.9 to 35.6 in January, better than expected, but still a sign of contraction

International spot gold traded in the range $ 928.20- $ 900.70a Troy Ounce and last quoted at $901.25

Weekly Outlook (DG. OCT.)

$933 is the major resistances .If sustain above that level, expect more uptrend. Resistances are $954, $968, $988. Supports are at $909, $899, $881 and $862.

Last day DGCX Gold APR. Traded in the range $930.8-$903.10and closed at $ 927.90

TECHNICAL OUTLOOK (Intra-day)

GOLD (APR) - Bullish above $ 908 bearish below $ 902


MCXARUN
9994500540