Gold settled higher inflation concerns and weaker Treasury yields lured buyers back into the safe haven asset.
The news reinforced gold prices as investors tend to buy gold to hedge against inflation. Falling yields on Treasurys also encouraged investors back into the gold market. Gold continued long term to attract buyers, with open interest in June 2011 and December 2011 contracts gaining ground in recent days.
Gold opened the day at 20,511. A bounce after the solid employment data took us to an intraday high of 20,644. Dollar strength and a weaker market for treasury encouraged sales in the metal, takes us to a low of 20,502.
Gold finally settled the day at 20615.Now support for the gold MCX is seen at 20530 and below could see a test of 20,445.
Resistance is now likely to see at 20,672, a move above prices testing 20729.
Trading Ideas:
Gold trading range is 20,445 to 20,729.
Yesterday gold settled higher on inflation concerns
Gold looks at support at 20,530 and resistance at 20,672 take.
Spdr gold business confidence fell by 1.52 tonnes to 1293.78 tonnes
source:commodityonline
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