Gold To Remain Range Bound, Dollar Index Retreats: Karvy
CommodityOnline | Jan 17, 2014 05:53AM ET
Bullion traded in a highly ranged manner yesterday with the total movement in gold prices for the day stood lower than $10 per ounce. At the end of trade, Gold for most active February expiry closed at $1240 per, a tad up by 0.15%.
In the Indian markets, we saw further lower gains with prices closing at Rs 29030 per 10/Gms, in the green by just 0.05%.
On one side prices finished modestly in the green, we had anticipated higher gains on expectations that the US Jobless claims number could come out with a negative surprise, particularly post the highly negative Monthly Jobs report from the US Labour department for the month of December. While Jobless numbers were little change, continuing claims advanced sharply and provided support to our view, however the gains were limited as against our expectations. Other than this, we also had the important CPI inflation number from the EU and US all of which were stable and could not provide any major direction to prices.
The Dollar index has retreated back from its highs and currently hovering near the 80.90 mark. With no major cues from the Euro territory we might see ranged trade continuing in the afternoon session. The US session has a number of readings mainly pertaining to the industrial metal segment and may have some impact on trading particularly in Silver. Overall we are holding on to a ranged outlook into gold prices in today’s trade. Only a move above or below the aforementioned technical range could dictate the movement in the commodity in coming sessions.
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