Gold Gives Up Rs 32k Yet Again On MCX MARKET

 Advisory Data :-

MCX Gold futures have corrected yet again, falling in line with their global counterparts and giving up the Rs 32k levels. COMEX futures continued to face selling pressure after hitting their fresh seven-month highs yesterday. The metal surged in last few days as the US dollar wilted and commodity prices and global equities rallied. Gold futures advanced sharply after the Fed said last Thursday that it would buy $40 billion of mortgage-backed securities each month until it starts to see the labor market pick up. The global futures are quoting at $1766, down six dollars on the day right now.

Euro dropped today, broadly maintaining a downward trend after hitting its five month highs earlier in the week as the risky assets looked likely giving up their last week's monetary-easing induced gains and investors eyed real improvement in economic numbers before committing themselves further on the long side. The Asian markets mostly eased for a second day today. China's manufacturing activity contracted in September for the 11th straight month, indicating that the slowdown in the world's second largest economy is continuing. HSBC's flash Purchasing Mangers' Index (PMI) came in at 47.8 on a 100-point scale, up slightly from its final reading of 47.6 the previous month, but still below July.

Federal Reserve Bank of Dallas President Richard Fisher stated today that the central bank's third round of bond purchases would probably fail to create jobs while risking higher inflation. This could support gold on dips though the profit selling pressure might not abate much given the latest array of massive gains.

Last week, the US central bank extended an existing program where it buys long-dated securities and sells short-dated ones, and extended guidance for ultra low interest rates out to 2015. The yellow metal has now rallied for a fourth consecutive week and seems to be have been put on a very firm track following the gain of nearly 40 dollars in a single session after the FOMC pledge. The Metal neared $1780 per ounce on Friday and is up more than 200 dollars in the month so far. The Indian gold prices jumped to fresh all time highs above Rs 32000 last week though the strength in the INR capped the upside.

MCX Gold futures are quoting at Rs 31925, down Rs 93 per 10 grams on the day or 0.29%. Prices had opened at Rs 32000 per 10 grams but fell steeply in early moves. The open interest is up marginally- showing a rise of 0.62% on the day and the counter is likely to face continued selling pressure on the rallies