MTECHTIPS;- Rising Dollar could prevent sharp falls in MCX Gold

On India’s MCX bullion opened flat due to lack of trading activity in international as well as in local markets. Spot gold and silver held near $1654 and $30 an ounce while on the MCX gold and silver opened slightly lower.MCX Gold February contract was down by 0.50% to 30711 with intraday low of Rs 30707 per 10 grams, MCX Silver March contract slipped by 0.30% to Rs 57570 per kilogram in the forenoon session.For intra-day, gold and silver are likely to be in a bearish mode and a sell on rise strategy can be used.MCX February gold is set to find major support at Rs 30600 and resistance at Rs 30850. Major support for silver March contract is expected at Rs 57000; below this level silver may find next support level at Rs 55000.Gold is likely to dip in the domestic market but a rising dollar could prevent sharp falls.Uncertainty over the US fiscal crisis is keeping the dollar firm. The U.S. economy has been recovering and the market is optimistic of resolution of the fiscal cliff which may put some pressure on bullion.Meanwhile, efforts are underway to save the US from going off the cliff.




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