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Feb 01, 2013, 11.17 AM IST | Source: Moneycontrol.com

Gold prices may decline to Rs 29150-27850: Mangal Keshav

Managal Keshav has come out with its report on Gold, Silver, Copper and Crude Oil, The research firm says Gold Prices can test old support at Rs 30350-30400, a close below this will confirm the bearish trend and prices can dips towards Rs 29150-27850 levels.

Managal Keshav has come out with its report on Gold, Silver, Copper and Crude Oil, The research firm says Gold Prices can test old support at Rs 30350-30400, a close below this will confirm the bearish trend and prices can dips towards Rs 29150-27850 levels.

Gold futures fell more than 1% on Thursday, pressured by a technical selling after the previous session's rally, as investors focused on the all-important US nonfarm payrolls report for a clue to Federal Reserve's monetary outlook. Gold holdings of SPDR gold trust, the largest ETF backed by the precious metal, declined to 1,328.09 tons, as on Jan 30. Silver holdings of ishares silver trust, the largest ETF backed by the metal, declined to 10,378.52 tons, as on Jan 31. Copper & other meals declined with copper retreating from a 3-1/2 month peak, as investors grew wary about the lack of underlying metals demand amid economic recovery in top metals consumer China and in the United States.

Copper futures for March delivery closed down by 0.5% at USD3.732 on the COMEX division of the NYMEX. Nickel rose to a 3-month high on LME as stainless steelmakers, the biggest users, stocked up on metal amid signs of recovering economic growth. Crude futures declined on profit-taking after US weekly jobless claims rose more than anticipated, but prices still logged in their best annual start in seven years.

Brent crude oil futures rose to 3-month highs, widening its premium over US crude, on concerns about rising crude stockpiles in the US Midwest prompted heavy trading based on the spread between the two benchmarks. Natural gas futures declined, after the US Energy Information Administration reported a smaller than expected decline in inventory levels. Natural gas inventories declined by 194bn cubic feet to 2.802 trillion cubic feet for the week ended Jan. 25, as per the EIA.

Technical alerts:

Gold Prices have closed below its strong support at 200-day SMA, indicating that the trend has turned Bearish and can test old support at 30350-30400, a close below this will confirm the bearish trend and prices can dips towards 29150 & 27850 levels.

Spot Gold Prices are currently trading between their long term Simple Moving Averages (SMA’s), giving no clear direction on the trend. USD1,662 (200-day SMA), USD1,693 (50-day SMA) & USD1,717 (100-SMA day).

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