At MCX Gold Feb contract gained near to ‚350 during last two trading days. The metal has made the support level of ‚28268. The precious metal is expected to fall further as US economic indicators are exceeding analysts expectations. On 24th Dec US Core Durable Goods and Durable Goods were more than forecast and yesterday less jobless peopled filed for unemployment claims that may support Fed to cut more amount of asset purchase next time that is a negative sign for Gold.
The metal has already dropped to the price level of June 2010 on Fed stimulus cut. Investors dumped their holdings as US economy is strengthening and stock markets are making headway. Investors are expecting that the metal may further lose in next year.
During these holidays at US and after long bearish trend settlement from short sellers might have raised the metal price during these two days. The haven asset may regain if India will lift strict import restriction.
Depreciation in rupee is expected to support precious metals. After market opening Gold and Silver both are down by 0.21% and 0.55% respectively. Base metals, except Aluminium, are also down.