Gold languishes at 7-week low as fund outflows resume

#1
Falls below $1,280 briefly but recovers, still near 7-wk
low.Gold hit a fresh seven-week
low on Tuesday, after posting its first monthly drop of the
year, as investors pulled money out of bullion backed
exchange-traded funds in favour of riskier assets such as
equities. Bullion prices are inversely correlated to equities as gold
is seen as a safe-haven asset.


Global feeds:
Spot gold was little changed at $1,283.85 an ounce by
0302 GMT, after dropping nearly 1 percent on Monday. The metal
briefly fell to a low of $1,278.34 earlier in the session - its
weakest since Feb. 11.
"There is a little physical demand coming in at these
levels. But unless Chinese demand recovers strongly, we won't
see much of an impact on prices," said one Sydney-based precious
metals trader.
"But I do think the selling may have been overdone given
that the geopolitical tensions in Ukraine are still not
resolved. We might climb back to $1,300," the trader said.
Another dealer said there was strong support for prices
around $1,280.
"There is good support in the $1,275-$1,280 level. We could
see some consolidation at current levels," the trader said.
Outflows from SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, resumed after a two-day pause.
Holdings of the fund fell 3.89 tonnes to 813.08 tonnes on Monday
- the biggest outflow in more than a month.
SPDR holdings are closely watched to gauge investor
sentiment towards the metal.
On the physical side, dealers said there was a slight
increase in demand as prices fell towards $1,280.
In China, the world's biggest bullion consumer, local prices
have been at a discount to spot prices on weak demand.
The discounts, however, have been narrowing over the last
few days, indicating that some buyers are coming back into the
market.
Prices for 99.99 percent purity gold on the
Shanghai Gold Exchange were at a discount of about 50 cents an
ounce on Tuesday, compared with a discount of up to $8 last
month, according to dealers.


Metal Last Change Pct chg

Spot gold 1283.85 0.21 0.02
Spot silver 19.66 -0.05 -0.25
Spot platinum 1412.99 3.79 0.27
Spot palladium 766 -5.9 -0.76
Comex gold 1283.7 0.3 0.02
Comex silver 19.685 -0.067 -0.34
Euro 1.3773
DXY 80.118

COMEX gold and silver contracts show the most
active months


Mcx technical update:
After a sharp 10 day debacle in Gold the prices are trying to recover in the intraday charts on MCX. The session for MCX Gold closed at Rs 28536 per 10 grams, up 0.55%. The close above Rs 28500 is expected to bring some more positives for the contract, with fresh targets of Rs 28900 per 10 grams. Fibonacci retracement is showing the first retracement target for Gold at Rs 28725 per 10 grams. Open interest showed a jump towards 8256 contracts, against 4343 contracts a day before. Fast Stochastics is at 16%, which is indicator of the oversold position.
 
#2
Last day gold recovered a little in the evening session. physical demand over the country is rising as price is discounted. China the worlds leading consumer of gold seems to have a less demand over gold for the last few days.

Let me discuss some of the technical reasons also.

Here is a briefing of technical Analysis of gold april series:

Current gold price - 28184

The MCX Gold futures are currently testing support around the lower-end of the Bollinger Band on the weekly charts at Rs 28,000-odd levels.
The overall bias for MCX Gold is likely to remain bearish as key momentum oscillators on the daily and the weekly charts are in favour of the bears.

The 14-day RSI (Relative Strength Index) and the Stochastic Slow are fairly oversold on the daily charts. Hence, a bounce back cannot be ruled out.

However, the weekly MACD (Moving Average Convergence-Divergence) and the Stochastic Slow are in favour of the bears, hence any pull-back from current levels may be short-lived.

As per the daily Fibonacci charts, MCX Gold June futures today may seek support around Rs 27,835-27,770-27,700, while face resistance around Rs 28,265-28,330-28,395.

Similarly, GoldM June futures may seek support around Rs 28,005-27,945-27,885, while face resistance around Rs 28,385-28,445-28,505.
 
#3
sona kharid lo, Investment k liye gold sabse badhiya hai avi. equity mein avi invest karna thik nahi hai. kyon k usme avi risk ho jayga as bcoz FII activity avi hai par kab woh out of the scene ho jaye kya pata.