Wednesday, January 2, 2008

MCX Gold Likely To Open Higher

Gold contract was mostly lackluster throughout the day, as the traders remained non-volatile on closure of COMEX leading to numbness on MCX. Although rising geopolitical tensions leaded to elevation in Gold last night, before it lost ground as Dollar revived a bit against the majors.

Gold futures fell for the first time in six days on Monday which was also the last trading day as markets were closed for New Year on Tuesday, however the start has been good for the new session with Gold gaining $ 2.6 to trade at $ 840.3 per ounce on COMEX as the greenback is again trading weak against the majors. MCX Gold near month contract gained Rs 8 to close the trade at Rs 10606 per 10 grams. Resistances for the contract are at 10659 and 10720 levels.

The price of gold has also risen this year because of increased jewellery purchases in emerging economic powerhouses China and India, according to the World Gold Council.

The dollar is trading weak against the majors. The same is now quoting at 1.4622 against the EURO while against Yen is at 111.84.

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