Gold prices are expected to trade down in the domestic bullion as well as in futures markets on Tuesday due to the continuing bearish sentiments in the global markets despite the active presence of key supportive factors.
Weakness of US dollar and gloomy mining reports from South Africa not impacted on gold prices yesterday rather followed the melting crude oil prices that weigh on gold as the metal typically moves in line with crude.
At the MCX counter, the contract closed at Rs 71 to close at Rs 13097 per 10 grams. For today's session, the Resistance for the contract is at 13180 levels while Supports are at 13026 levels.
Gold prices fell by Rs 30 to close at Rs 13,370 per ten gram in the bullion market on Monday on emergence of selling by stockists at existing higher levels influenced by weakening trend in global market.
Stanndard gold and ornaments moved down by Rs 30 to Rs 13,370 and Rs 220 per ten gram while sovereign ruled flat at Rs 10,750 per piece of eight gram. At present MCX Gold spot stood at Rs 13197.87 per ten grams.
COMEX Gold rose as high as $845.55 an ounce, its highest level since Jan. 12, before trading at $831.85 an ounce, down 1.2 percent from $841.85 in New York late on Friday, as oil prices reversed course and slipped. Gold is traditionally bought as an inflation hedge and with inflationary pressures, diminishing interest could fade.
Bullion prices are trading down by $9 on electronic session today, after remaining closed yesterday on account of Martin Luther King Day. The euro fell to a five-week low against the dollar before a German report today will show investor confidence fell for an 18th month.
