Comex Gold Updates

COMEX Gold futures yet again slipped towards their one month lows of $1715 per ounce as the selling pressure stayed in place amid mixed undertone in global equities and strength in US dollar. The greenback is quoting in a positive manner after losing slightly yesterday and neared 1.3000 levels against the Euro yet again today. The currency had slipped after a local election in Spain saw Spanish Prime Minister Mariano Rajoy's party holding on to power in his home region of Galicia. The greenback had neared 1.3100 levels before this news hit the streets. COMEX Gold futures for December are quoting at $1720.45, down $5.85 per ounce on the day.

Global markets shriveled yesterday on world economic worries. The Japanese exports tumbled by 10.3% in the year to September, recording a drop for fourth consecutive month. This was the biggest drop in the measure for nearly 18 months. This hurt the sentiments on worries that the global economy is extending its weak run and demand for copper might slow in near term.

Further, the German central bank stated that there are increasing signs that a perceptible expansion of economic growth in the third quarter of 2012 will be followed by stagnation or even a slight decrease in gross domestic product in the final quarter of the year. In the final quarter of 2012, the German growth is likely to slow substantially as economic weakness in a number of Eurozone countries puts the brakes on growth.

Gold has been hit hard in the last few days as highs near $1800 per ounce proved unsustainable and weak Chinese demand hurt the sentiments. Mainland Chinese imports of gold from Hong Kong slowed dramatically in August. Hong Kong shipments of the metal to Mainland China for the month totaled 54 tons, a drop of 29% from the 76 tons shipped in July, according to data from the Hong Kong Census and Statistics Department.

COMEX Gold has dropped nearly 80 dollars in last two and half weeks and could witness some buying at the present levels. The local MCX Gold futures are trading at Rs 30979, down Rs 89 per 10 grams on the day. Prices had dropped more than Rs 200 on the day yesterday. The counter has been witnessing a persistent rise in the open interest, which is up 4.64% on the day so far today.

Commodity tips updates

International Gold was little changed on Friday after gaining in the previous session when the dollar eased from a one-month high, although it remained on target for its biggest weekly drop in two months. Gold has been fluctuating between $1,760 and $1,780 so far this week, with no fresh catalysts to drive it from that range, after stimulus measures by central banks pushed prices near $1,800 earlier this month. The COMEX December gold was trading nearly flat at $1,769.80 an ounce, 0.8 an ounce, after moving in the range $ 1772.7- 1768 an ounce.

Indian rupee weakens with quoting at Rs 52.86, 0.35% drop in the value against the greenback. MCX Gold December is quoting at Rs 31385, up 0.20% from the last close. Support for the counter is at Rs 31300-31210 and resistance is at around Rs 31450-31520 level.

Silver December contact is trading at $ 33.915, down 0.167 per ounce. Silver on MCX is quoting at Rs 61624, down 0.31% from the last close. Resistance is seen at Rs 61800-61950 and supports at Rs 61500-61300 level.gold