Gold Futures Surge, Resistances Materialised

International as well as the domestic gold futures for the February contract have hit their resistances of $816.50 and Rs 10360 respectively.

In the currency trading today, sterling pound was hurt further today after the Home track limited said house prices fell by 0.3 % in December, following a 0.2 % decline in November. House prices fell the most in three years in December, and the threat of more declines may cause the property market to seize up in 2008. UK’s currency fell to more than a four month low today at 1.9800 versus the US counterpart. Dollar also gained against the Yen, but traded mixed against the single currency.

The day players are suggested to follow the buy on dips and sell on rally strategy. Dollar traded mixed versus the Euro due to no economic data from both the countries today while the crude oil also remained weak for most part in the day so far. Following this kind of movement in crude and dollar the bullion is expected to trade in a range today.

Comex Gold futures for the upfront contract were last seen quoting at $815.40 an ounce, and the domestic futures were trading down by marginal Rs 4 at Rs 10320 per 10 grams. The $812.20 should act as a good support for the international bullion.