ID :
120038
Mon, 05/03/2010 - 14:06
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https://oananews.org//node/120038
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Gold futures set to extend gains
Dubai, May 3, 2010 (WAM)_ Dubai Gold (DG) futures contracts on Dubai Gold and Commodities Exchange (DGCX) seem to be in bullish mode for next few sessions this week before hitting profit taking, subject to the dollar direction. The yellow metal is on the rise as a financial hedge against the gathering sovereign debt storm in Europe according to a report in "Emirates Business."
DG futures contract had been gaining momentum for the past two weeks as it closed at US$1179.60 per ounce showing a 2.07 per cent rise during the week ended April 30. Prior to the previous week also, DG futures closed at weekly high of US$1155.70, registering 1.65 per cent overall gain. The DG futures recorded weekly high of US$1181.40 and low of US$1146.80 on DGCX in the previous week.
"Investors still remain unsure about sovereign crisis that might erode the value of currencies. The trading range for gold would remain US$1144.00 as key support and US$1196.00 as key resistance," Suchit Bhatia, Commodity Trader at CFB Global, told Emirates Business.
The possible rise of the US dollar may take sheen off the yellow metal. The US dollar is expected to show strength against major traded currencies including the euro, pound and yen. "If the US dollar goes up, then gold will come down. The rise in the greenback would also prompt profit booking in gold," said Mitendra Nathani, a financial analyst at CFB Global.
Prices on DGCX breached US$1,180 for some time last week and technical indicators show buying interest as investment demand surged. If DG futures surpass above US$1,180 early this week, then this surge will trigger buy orders.
DG futures contract had been gaining momentum for the past two weeks as it closed at US$1179.60 per ounce showing a 2.07 per cent rise during the week ended April 30. Prior to the previous week also, DG futures closed at weekly high of US$1155.70, registering 1.65 per cent overall gain. The DG futures recorded weekly high of US$1181.40 and low of US$1146.80 on DGCX in the previous week.
"Investors still remain unsure about sovereign crisis that might erode the value of currencies. The trading range for gold would remain US$1144.00 as key support and US$1196.00 as key resistance," Suchit Bhatia, Commodity Trader at CFB Global, told Emirates Business.
The possible rise of the US dollar may take sheen off the yellow metal. The US dollar is expected to show strength against major traded currencies including the euro, pound and yen. "If the US dollar goes up, then gold will come down. The rise in the greenback would also prompt profit booking in gold," said Mitendra Nathani, a financial analyst at CFB Global.
Prices on DGCX breached US$1,180 for some time last week and technical indicators show buying interest as investment demand surged. If DG futures surpass above US$1,180 early this week, then this surge will trigger buy orders.
