Gold prices fell to a six-month low as the Federal Reserve's pull back in the U. S. monetary stimulus hurt gold's inflation hedge appeal. The Fed has withdrawn $10bn of bond buying every month, leaving it to a monthly purchase of $75bn of securities.

Fed also lowered its expectations for both inflation and unemployment over the next few years. Also, the Senate passed the final budget deal easing uncertainties in the financial markets. Gold prices are expected to move further down as a stronger dollar and Fed's decision is likely to weigh on the investment demand for gold and hurt prices.

Over all, MCX Gold February future is in consolidation and sustaining around lower levels. For the coming week 27700/27340 will act as a major support whereas 28785/29100will act as a major resistance level in MCX Gold February future. For the next week in MCX Gold, trader can use sell on higher level strategy, if MCX Gold February future sustain below the levels of 28270 then it could test the levels 28100 /27770.

Technically, MCX Silver March futures is sideways and sustaining around lower levels. For the coming week 45000/46800 will act as major resistance levels where as 41600/40000 will act as major support in MCX Silver March futures. For the next week in MCX Silver futures, traders can use sell on higher level strategy, if MCX Silver March futures sustains below 43500 then it could test the levels of 42450/ 41000.