Gold rallied after a long fall that dragged prices to the level of $1182.57 on 31st December. Low Gold and Silver prices spurred physical demand in the market. High demand from Asian market pushed prices to the high of $1238 on 3rd January. Investors were encouraged to take long position as the level of $1200 is acting as strong resistance.
In 2013, at the beginning the metal was trading above $1600 but gradually the price fell as chances of stimulus rollback gained on strengthening US economy. Finally by the end of Dec, 13 Gold lost by 27%.
In New Year again U.S. has shown positive indications as economic results are beating analysts expectations. Last week consumer confidence and home sales have shown improvement and yesterday Manufacturing PMI came to 57.0 and Jobless claims fell to 339k. Fed may taper the remaining $75 billion bond purchase if the economy affirm growth by consecutive strong results.
It is for sure that further tapering will put Gold on sideway but the metal may find support from physical buyers at low prices.
At MCX the metal gained by 0.80% and trading near to ‚¹29200 and Silver is up by 0.25%. Gold oz gained 0.70% at $1234.20 while Silver is flat at $20.09. Platinum spot is up by 0.45% at $1409.63 and Palladium is flat at $731.15 at Euro Markets.