US Gold futures fell yesterday despite weak dollar and fall in oil prices. Weak oil eases inflation hedge and are supported the fall in precious metals . Weakness in global stock markets prompted broad-based liquidation in all assets class, including gold.
Dollar fell against the euro on Monday as weak U.S. manufacturing data. According to the report The New York Federal Reserve's regional index of manufacturing fell from -24.6 to -25.4 in November, the lowest reading since the index began in 2001. At the same time The Federal Reserve said industrial production was up 1.3% in October, up from a revised 3.7% decline in September.
According to the U.S. Commerce Department, Retail sales were down 2.8% in October, weaker than expected and the largest monthly drop on record. Excluding autos, sales were down 2.2%. And The University of Michigan's consumer sentiment index increased from 57.6 to 57.9 in November, stronger than expected.
In the trade balance report, Commerce Department revealed an overall decrease in the deficit to -$56.5bln (lowest since October 2007), versus the unrevised -$59.1bln result that occurred in August. In contrast, the real dollar goods balance saw notable deterioration to -$42.1bln, versus the unrevised -$39.4bln seen in August.
International spot gold traded in the range $ 748.35 -$ 730.00 a Troy Ounce and last quoted at $736.25
Weekly Outlook (DG. OCT.)
A bullish movements expected above $767.Resistances are $778 $793, $812,828 Supports seen at $753, $735, $726 and $ 709.
Last day DGCX Gold Dec. traded in the range $748.00- $730.50 and closed at $ 738.4
