Gold prices remained in a range to down for the week. As the number of Americans filing new claims for unemployment benefits fell for the second consecutive week, suggesting a sharp step-down in job growth in December was likely to be temporary.
Lower U.S. inflation could raise interest in Gold, but it could also prompt Federal Reserve to change the pace of the roll back of its bond-buying program.
Earlier this week, the World Bank raised its forecast for global growth for the first time in three years as advanced economies started to pick up pace. Gold prices are expected to move in a range as positive US data has reduced the safe haven appeal for Gold and marginal physical buying in Gold can keep the prices in range.
Over all, MCX Gold February future is in consolidation and sustaining in range. For the coming week 28500/28000 will act as a major support whereas 29000/29371will act as a major resistance level in MCX Gold February future. For the next week in MCX Gold, trader can use sell on higher level strategy, if MCX Gold February future sustain below the levels of 28865 then it could test the levels 28670 /28510.
Technically, MCX Silver March futures is consolidate and sustaining around lower levels. For the coming week 45740/47000 will act as major resistance levels where as 42000/39931 will act as major support in MCX Silver March futures. For the next week in MCX Silver futures, traders can use sell on higher level strategy, if MCX Silver March futures sustains below 44350 then it could test the levels of 43200/ 42000.
Vivek Gupta, Director Research, CapitalVia Global Research Limited
NOTE: The views expressed are those of the author