As also mentioned in our weekly report, we believe gold prices might continue to trade higher in the first half of the week. It could be because of the January effect that investors are now buying gold amidst cheaper availability. However, the overall trend has not changed yet. Meanwhile, global equities are trading down and likely to extend their losses in the coming week, we might drive further gains in the gold prices. Gold prices have rebounded smartly from $1180 and may remain marginally higher in the very near-term unless any fresh cues are noticed in the market.
As of today’s trade, we are seeing further additions into the yellow metals prices at the international platform wherein the commodity advanced for the fifth straight day to touch its highest level in nearly three weeks. In fresh cues from the US Fed which supported the movement for gold were comments from Ben Bernanke. The Fed Chairman gave a positive scenario for the US economy and also added the central bank remains committed to highly accommodative policy despite the near-term trimming stance against its bond-buying program. We have a ranged to bullish view into the commodity for Intra-day.
GLOBAL MARKET ANALYSIS: Late Friday, markets showed a precarious movement. The US market posted a negative close, Euro currency slid, bullion advanced and crude fell sharply below $94. Therefore, Asian markets this morning has fallen over 2% with lower Chinese PMI services number adding on to the negative pressure. From commodities, bullion. Gold and Silver prices are trading marginally higher at $1243 and $20.17 and believe it to continue their gains on today’s trade.
We have the US non-manufacturing Composite index which is expected to improve from 53.90 to 54.60 and might prohibit much fall on oil prices. We have to be careful today as the economic data expected today from India, UK, Germany, Euro-zone and the US are mostly for PMI services number. Any dramatic change in these data might change commodities intraday trend.