Gold tumbles below USD 1600 post Cyprus deal: Dani Comm

Dani Commodities has come out with its report on bullion, metals and energy. According to the research firm, sell MCX Gold at Rs 29490 with a stop loss of Rs 29558 for a target price of Rs 29380.

Gold futures tumbled below $1600 an ounce in Asia electronic trades as the safe haven demand for gold drops after the financial rescue deal struck between Cyprus and its international lenders.

Gold for delivery in April are trading down $4.4 at $ 1600.1 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it fell $1.60, or 0.1 percent, to settle at $1,604.50 an ounce, after trading as low as $1,588.40. Prices settled down $7.70 at $1,606.10 an ounce on Friday.

Gold dip under $1,600 came as the euro fell against the dollar. European and Asian stocks closed mostly higher, luring some investors away from gold,  though U.S. equity indexes were trading lower.

An agreement on Monday paved the way for Cyprus to receive up to 10 billion euros ($13 billion) in bailout funds from the so-called troika - the European Commission, the European Central Bank and the International Monetary Fund - to avert a potential collapse of the European nation’s financial system.

The agreement, however, calls for a restructuring of two of the country’s largest banks and deposits at both banks larger than €100,000 will be subject to a levy.

MCX April gold futures may open today's session near Rs 29500 levels with resistance near Rs 29570 levels and support near Rs 29400 and Rs 29300 levels.

MCX GOLD
International: Major Support at USD1580. Bearish below USD1580.
Domestic: Sell at 29490, Stoploss 29558, Target 29380.

MCX SILVER
International: Major Support at USD28. Bearish below USD28.
Domestic: Sell at 53992, Stoploss 54220, Target 53580.

MCX COPPER
Domestic: Sell at 415.80, Stoploss 417.50, Target 413.50.

MCX CRUDE OIL
International: Major Support for WTI at USD89 Bullish above USD 91
Domestic: Buy at 5160, Stoploss 5140, Target 5190.

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