AHMEDABAD (Commodity Online): On Tuesday, 13 July 2010 at COMEX Bullion metal prices ended substantially higher. Prices rose after traders showed back interest in buying bullion metals following their recent drop in prices. Physical demand for bullion also provided required support. On account of this traders returned back to them following Portugal's debt downgrade. The weak Dollar also relieved in higher gold prices.
A stronger Dollar pressures demand for Dollar-denominated commodities, such as Silver, Crude oil and Gold, which become more expensive for buyers of other currencies and also vice versa. Recently, the embattled Euro has played stronger role in moving prices rather than Dollar fluctuation.
On Tuesday, Gold for August delivery ended at $1,213.5 an ounce, higher by 1.2% an ounce on the New York Mercantile Exchange. September COMEX Silver futures ended higher by 1.9% at $18.26 an ounce. This was highest closing for Silver in two weeks.
According to Amrita Mashar, Analyst with Commodity Online, One time most shining contract at MCX Gold august opened weak at 18430, down by 0.88 percent. Gold has faced some difficulty to sustain at high of 18485. For Gold Elliot wave oscillator giving negative signal by showing histogram -232 and 14 days RSI is 45. Immediate support is at 18350. On upper side Gold may test 18515.
Silver September contract opened at 29030, fall by 0.22 percent and currently trading at 28985. Elliot wave oscillator giving negative signal by showing histogram -279 and 14 days RSI is 49. Silver range may remain for the day between 28900-29150.
“Bullions started the week on a cautious note today, staying pressed on a moderate uptick in the global equities. Gold and silver futures eked out some gain but were not able to hold intraday highs as traders are not sure what trend is emerging in the commodity” added Amrita.
Gold and Silver prices may disappoint traders as it couldn’t break fresh highs and may decide that price have peaked for now only. For the moment, longs have covered quite aggressively suggesting the upside could be limited if they decide to re-enter.
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