Dollar Resolution Cappes Gains For Yellow Metal

Firmness in the U.S. dollar capped investment demand for the precious metal last night. The rally for Dollar which initiated during the previous week is still holding the currency in a suitable zone against the majors. Dollar is quoting at 1.4406 against the EURO. Demand lacklusterness from India is also letting the prices of Gold to come down, as it is the end of festive season.

COMEX Gold shredded 80 cents and was at $793 per ounce, MCX Gold was also negatively biased with losses to the tune of Rs 74 and closed the session at Rs 10170 per 10 grams. Supports for the contract are at 9975 and 9960 levels.

The Federal Reserve last week released its report on industrial production and capacity utilization in the month of November, showing that industrial production increased by a little more than economists had been expecting.

The report showed that industrial production rose 0.3 percent in November following a revised 0.7 percent decrease in October. Economists had expected production to increase by 0.2 percent compared to the 0.5 percent decrease originally reported for the previous month. Capacity utilization in the mining industry rose to 92.3 percent in November from 91.3 percent in October, while manufacturing capacity utilization edged up to 79.9 percent from a downwardly revised 79.7 percent.

Gold-warehouse inventories edged down 795 troy ounces to stand at 7.4 million troy ounces as of late Thursday, according to NYMEX data. Silver stockpiles dropped by 1 million troy ounces to stand at 133.5 million troy ounces, while copper supplies edged down 179 short tons to stand at 16,372 short tons.