Gold futures are expected to carve out some gains after bouncing off a low under $1160 for a second consecutive session. The commodity has been moving in a direction with the US dollar and a persistent drop in the value of the US currency is not auguring well for the bullion. However, bargain hunters have swung into action as the prices managed to eke out some small gains and there is a possibility of the metal rising further in case the $1175 levels are broken on the up.
Prices are trying to stay above $1170 per ounce in the Asian trades. The Gold futures for December delivery were last seen quoting at $1171.20, unchanged from the previous close.
The metal has dropped nearly 8% since climbing to a record $1,266.50 on June 21. Prices on July 28 slipped to a 12- week low of $1,159.30 earlier in the week. The metal needs some strength in the US dollar to witness a dose of appreciation. The euro yesterday climbed to a 12-week high of 1.3100 against the dollar but is losing ahead of the weekends today. The single currency is now quoting at 1.3057 against the US dollar and Gold may rise near $1175 per ounce if the trend continued. Watch out for some selling to emerge under $1170 per ounce mark.
The MCX Gold futures for October closed at Rs 17854 per 10 grams yesterday amid a strong rollover and is expected to rise towards Rs 17900 per 10 grams today. The futures seem to have formed a very nice support around Rs 17800 levels now. A fresh breakout could be seen if Rs 17900 is breached.
