Gold Feb seen in Rs 30900-31900 range next week: Emkay

Emkay Commodity Research has come out with its report on Commodities. According to the research firm, Gold February is expected to move in the range of Rs 30900-31900 during the week ahead.

US Gold futures closed at $1715 an ounce, $36.8 down for the week against the previous which comes to a huge fall of 2.1% last week.

Tensions over fiscal cliff which is seen escalating day by day pushed the gold prices down for the week. Adding to it was acceptance of second round of instalment for Greece bailout by Eurozone which reduced the safe haven appeal for gold and dragged the prices down

Gold fell the most in the month during last week major reason was the deflation fear related to US fiscal cliff and worries about implementation of the Greece debt fund reduced the risk appetite of investors

Until any common decision is being made republicans and democrats in US Gold can be still seen higher as the safe haven appeal for gold can be seen escalating in near term

We expect gold prices to move higher this week as worries about fiscal cliff and Nonfarm payroll numbers this week can show some sign of improvement in US leading a decision on the upcoming crisis

Gold prices in India went further down by 3.63% after touching its all time high. Stronger rupee over approval of various reforms in parliamentary session pushed the prices further down then international prices

Outlook

Gold (February): Gold is expected to move in the range of Rs 30900-31900 during the week ahead.

Silver (March): Silver is expected to move in the range of 60800-63800 during the week ahead.

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