Gold settled up 0.22% at 28935 rose to a three-week
high as simmering tensions in Ukraine fuelled buying. Market remained
cautious on whether the gains can be sustained, however, as outflows
from the top physical gold exchange-traded fund continued to indicate
bearish sentiment.
Bullion's safe-haven appeal increased after news that a street battle between supporters and opponents of Russia in southern Ukraine over the weekend killed at least 42 people, including dozens of pro-Russian protesters incinerated in a burning building, bringing the country closer to war.
Global economic uncertainty after data showed a contraction in Chinese manufacturing that renewed concerns about a slowing economy in China also supported gold, and the market largely ignored a report showing upbeat U.S. service-sector activities. Also the SPDR Gold Trust, said its holdings fell 2.70 tonnes to 782.85tns on Friday, bringing its outflow for the week to nearly 10 tonnes.
On Friday, the metal fell to a one-week low of $1,276.60 after strong U.S. jobs data. But it reversed the losses to end the day up 1.3% on a sharp increase in the number of people dropping out of the workforce and rising Ukraine tensions. Still, SPDR Gold Trust, said its holdings fell 2.70 tonnes to 782.85 tonnes on Friday - its third straight session of losses.
Last week alone, the fund saw nearly 10 tonnes in outflows. Hedge funds and money managers cut their bullish bets in gold futures and options, as expectations of a stimulus cut by the Fed dented the metal's appeal as a hedge, data from the CFTC showed on Friday.
Technically market is under short covering and getting support at 28861 and below same could see a test of 28786 level, and resistance is now likely to be seen at 29025, a move above could see prices testing 29114.
Trading Ideas:
--Gold trading range for the day is 28786-29114.
--Gold jumped on short-covering and as rising tensions and violence in Ukraine burnished the metal's safe-haven appeal.
--Investors remained cautious as outflows from the top physical gold exchange-traded fund continued to indicate bearish sentiment.
--Global economic uncertainty after data showed a contraction in Chinese manufacturing that renewed concerns about a slowing economy also supported gold.
www.punjiniveshonline.com
Bullion's safe-haven appeal increased after news that a street battle between supporters and opponents of Russia in southern Ukraine over the weekend killed at least 42 people, including dozens of pro-Russian protesters incinerated in a burning building, bringing the country closer to war.
Global economic uncertainty after data showed a contraction in Chinese manufacturing that renewed concerns about a slowing economy in China also supported gold, and the market largely ignored a report showing upbeat U.S. service-sector activities. Also the SPDR Gold Trust, said its holdings fell 2.70 tonnes to 782.85tns on Friday, bringing its outflow for the week to nearly 10 tonnes.
On Friday, the metal fell to a one-week low of $1,276.60 after strong U.S. jobs data. But it reversed the losses to end the day up 1.3% on a sharp increase in the number of people dropping out of the workforce and rising Ukraine tensions. Still, SPDR Gold Trust, said its holdings fell 2.70 tonnes to 782.85 tonnes on Friday - its third straight session of losses.
Last week alone, the fund saw nearly 10 tonnes in outflows. Hedge funds and money managers cut their bullish bets in gold futures and options, as expectations of a stimulus cut by the Fed dented the metal's appeal as a hedge, data from the CFTC showed on Friday.
Technically market is under short covering and getting support at 28861 and below same could see a test of 28786 level, and resistance is now likely to be seen at 29025, a move above could see prices testing 29114.
Trading Ideas:
--Gold trading range for the day is 28786-29114.
--Gold jumped on short-covering and as rising tensions and violence in Ukraine burnished the metal's safe-haven appeal.
--Investors remained cautious as outflows from the top physical gold exchange-traded fund continued to indicate bearish sentiment.
--Global economic uncertainty after data showed a contraction in Chinese manufacturing that renewed concerns about a slowing economy also supported gold.
www.punjiniveshonline.com
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