Bullion Update and Market Outlook: Nirmal Bang
Gold inched up on Friday, keeping gains above $900 after rallying to a three-week high the previous day, while holdings of the world's biggest gold-backed exchange-traded fund dipped further away from a record high. Prices were supported as physical demand from India, the world's largest consumer, has picked up ahead of the Akshaya Tritya festival on April 27, an auspicious time for gold buying.
Holdings at the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust dropped to 1,104.45 tonnes as of April 23, down 1.53 tonnes or
0.1 percent from the previous day. China revealed on Friday that it had quietly raised its gold reserves by nearly three-quarters since 2003, increasing its holdings to 1,054 tonnes and confirming years of speculation it had been buying.
Low interest rates globally are helping to bolster financial strength for banks and securities firms, but consumer demand was still slack, limiting rises in stocks and keeping risk aversion alive, U. S. stocks rose in volatile trade on Thursday asbetter-than-expected results from several regional banks lifted financial shares, overshadowing disappointing economic data.
Investors will be eyeing on Bank Stress Test report which is likely to support Gold prices. We expect Gold prices to remain firm during the day and may test Rs. 14740/10 gm on MCX and 920/oz.
Gold: Gold prices moved in North ward direction yesterday, however it is seen taking resistance at the 35 days EMA. Any movement crossing the 35 Days EMA above 14565, can take prices in the higher range around 14550-14750. Thus buying can be done above the 14565 levels for next level of 14750 levels.