Gold dropped yesterday as encouraging employment data reduced the need to invest in the precious metal as a hedge option. In the international future market, May-dated Gold fell to USD 879.80, down USD 13.70 for the session. The metal tumbled to a low of USD 875.50 in the intraday session, Ajay Kedia, managing director of Kedia Commodities said. On the economic front, the US Department of Labor revealed that initial jobless claims fell to 610,000 for the week ended Apr. 11, 2009, down 53,000 from the previous week`s revised figure, which caused equity markets to slip and gold followed. For today`s session, the immediate support can be seen at USD 870, if it breaks this level then next support can be seen at USD 845. On MCX, Gold June contract is also trading lower at Rs 14,044, down 0.68% as against its earlier close of Rs 14,140 per 10 grams. Now support for the Gold MCX is seen at Rs 14,026 and below could see a test of Rs 13,951. Resistance is now likely to be seen at Rs 14,252, a move above could see prices testing Rs 14,403. It is expected to hover in the range of Rs 13,600-14,480 and there is an opportunity to sell MCX Gold June contract at higher levels around Rs 14,200-240 with a stop loss of Rs 14,312 and target of Rs 14,162-14,120-14,060-14,010.

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