Gold Tips

Gold prices extended the gains on Monday, adding to the modest gains recorded Friday as the U.S. dollar weakened and amid expectations that Japan may pursue inflation more aggressively after the upcoming general elections. The metal had added less than $1 during Friday's regular session on the Comex division of the New York Mercantile Exchange. Gold had witnessed a good recovery after testing two month lows of $1670 per ounce in the first week of November. However, the metal rallied after Barack Obama managed to win the US Presidency for a second time and boosted hopes of a continuation of easy money policy in the medium term. The metal rose quite hurriedly as Diwali approached and Indian demand looked likely to lift the sales in retail spot markets. Gold surged to three-week highs near $1740 per ounce last week but failed to hold onto the highs and tested lows of $1700 per ounce. Gold prices have been subject to volatility as U.S. political leaders made efforts to reach to avert the “fiscal cliff,” an event that threatened to drag the economy into recession. Gold often drops on the dollar's strength, but also tends to gain during times of uncertainty, as the metal is widely regarded as a store of wealth. Gold futures for delivery in December climbed $10.80 or 0.63%, to $1725.2 an ounce in electronic trading. The counter right now quotes at $1723.6, up $8.9 an ounce. Silver December quotes at $32.695, up 0.301 cents per ounce. Euro quotes at $1.277 mark, up 0.30% from the last close. Indian rupee added further weakness at Rs 55.02, down 0.21% from the last close.

MCX Gold futures had neared Rs 32k levels but have been on a downward trajectory thereafter. The counter tested lows near Rs 31300 but recovered on bargain hunting and a continued sell off in the Indian Rupee. Rupee tested 55.20 per US Dollar mark today- its lowest level in two months. MCX Gold December traded higher in the Monday's trading session, the counter tested high near Rs 31700 per 10 grams. The counter currently hovers at Rs 31670, up Rs 40 or 0.13% from the last close. Technically, the counter is having next resistance at Rs 31750, Rs 31850 and supports at Rs 31620, Rs 31560 level. MCX Silver December jumped nearly Rs 340 to the session high Rs 61220 per 10 grams and is likely to find resistance at Rs 61250, Rs 61450 and supports at Rs 61000, Rs 60855 per 1 kg.

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