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Oct 10, 2012, 12.00 PM IST | Source: Moneycontrol.com

Mangal Keshav expects more upside in Gold above USD 1803

Mangal Keshav has come out with its report on Gold, Silver, Copper, Crude Oil and Natural Gas. The research firm has maintained its positive view on spot Gold, and expects more upside only above USD 1803. Prices could see a consolidation phase with Immediate Support around USD 1736 per ounce.

Mangal Keshav has come out with its report on Gold, Silver, Copper, Crude Oil and Natural Gas. The research firm has maintained its positive view on spot Gold, and expects more upside only above USD 1803. Prices could see a consolidation phase with Immediate Support around USD 1736 per ounce.

Gold fell for the third consecutive session, as astern warning by the International MonetaryFund on global growth and worries about aslowing Chinese economy reduced bullion'sappeal as an inflation hedge.Gold holdings of SPDR gold trust, the largestETF backed by the precious metal, increased to1,340.52 tons, as on Oct. 9.Silver holdings of ishares silver trust, the largestETF backed by the metal, declined to 9,920.18tons, as on Oct, 2.South African truck drivers will return to work,after employers agreed to raise wages by at least10%, as gold miners were fired for being part ofan unauthorized stoppage.The IMF said the global economic slowdown isworsening as it cuts the growth forecasts for thesecond time since April and warned US &European policymakers that failure to fix theireconomic ills would prolong the slump.France, Spain and several other euro-zonegovernments won't hit budget deficit targetsagreed with European authorities, theInternational Monetary Fund said, setting thestage for a contentious debate over whether thegovernments should pursue more cuts or allowthe targets to slip.

The US dollar rallied, finding safe-haven-relatedsupport after the International Monetary Fundcut its forecasts for global growth and soundedthe alarm over a worldwide slowdown.The dollar index, which measures the UScurrency against a basket of six currencies,traded at 79.973, up from 79.595 in late tradingduring the previous session.Copper futures traded steadily, as concernsabout weak global growth and its implications forindustrial metals demand offset expectations forfurther pro-growth policies from top consumerChina, aimed at stimulating the economy.Copper futures for Dec. delivery closed slightlyhigher by 0.2% at $3.724 on the COMEX divisionof the NYMEX.Crude oil futures rallied more than 3%, asincreasing tension in the Middle East counteredconcern that a global economic slowdown willcurb demand.Natural gas futures advanced to a 5-day high onNYMEX, ahead of a government report that mayshow a below-average inventory increase in theprevious week.

Technical Alerts:

Gold Prices now holds strong supports at 31129 (50-day SMA), 30430 (100-day SMA) and last at 29495 (200-daySMA). Prices need to close below 31100 to decline further towards levels discussed above i.e. SMA’s; howeveron failure to close below 31100… we could see a re-bound from current levels.

Spot Gold: We still maintain our positive view, but more upside is expected only above $1,803.Prices could see a consolidation phase with Immediate Support around $1,736 per ounce while other Supports are seen at $1,653.5 (200-day SMA), $1,638.5 (100-day SMA).

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