TRADING THE DAILY CHARTS

Due to restricted time and Internet connection that I have now, I have opted to trading using the daily charts.

Its not as aggressive and thrilling as trading on the shorter time frame but the result is about the same minus the headache. I'm beginning to like daily trading. I need to make decision once in a while and the rest of the time I just hold my position.

On a daily chart, the candlestick is much easier to read and pattern is much clearer. On 13th August I opened 3 position. 2 of which is still holding while 1 has been closed. At the moment all position are in profit.

Daily trading is not for everyone. It took me sometime to adjust on the requirements of daily trading, but once you are there you never look back.

DAILY TRADING - THERE IS NO SPOON

Some people are asking me about the secret of daily trading. The answer is there is no secret. It is there for everyone to see but the question is, can you accept what you see.

Trading the daily chart requires patience, lots of it. That is what most of us lack. Patience. If you look at the longer timeframe charts, you will see that price will stop or hover around certain areas. That is your key point. Always start or stop trading around these key point.

The next indicator I use is CCI. CCI alone is a bit of a headache. So I smooth it out with MA. With the MA, I can see the direction of trade clearly. People say MA is a lagging indicator but I dont want to be early going to a party. I like to enter when the party already started.

The last advice is, there is no such thing as holly grail. You just cannot win all the time. The best that we can do is try to win as much as possible and lose a little as possible. In the long run, it would be profitable enough to stay trading. Otherwise you need to find another business to run.

Market Reaction To Earnings Announcements

Market Reaction To Earnings Announcements

I found on CXOAG this post that addresses the issue

Earnings Surprises and Future Stock Market Returns

The post reports about the study

Aggregate Market Reaction to Earnings Announcements

The authors investigate the relationship between earnings announcement surprises and market returns on the days surrounding earnings news. The analysis identifies a negative relation between earnings news and market return that persists beyond the immediate announcement period, suggesting that market participants do not immediately fully impound these future market return implications of aggregate earnings news.

There may be a considerable degree of inefficiency in the market’s processing of aggregate earnings information. Consistent with this interpretation they find that Treasury bond rates and implied future inflation expectations respond directly to earnings news.

Microsoft Corporation (MSFT): Buy The Rumour Sell The News

Microsoft Corporation (MSFT): Buy The Rumour Sell The News

As it happened for Apple Inc (AAPL) and Google Inc (GOOG), Microsoft released very good results, but it was badly hit by the market. It lost 3.36% to $28.18. Amazon Inc (AMZN and Netflix (NFLX) did better after the releasing their results.

Microsoft reported second quarter revenues of $19.02 billion, up 14% year-over-year. The company's earnings per share were 74 cents per share, up 57% from last year and adjusted earnings per share rose 28% to 60 cents per share. Analysts estimated earnings of 59 cents per share on revenues of $17.84 billion.

In the Figure you can see the 5 minute chart.

It seems that investors were waiting for these earnings to download their stocks on good news and probably make the impact on price less significant. However, many had this idea and prices went down quite fast. The trend of this market is down (MSFT lost about 10% from the top) and every rebound is seen as an opportunity to sell. Too bad I closed my short position on the S&P too soon. I was not expecting this speed to the downside.


I like checking on twitter what is being said (my comment between brackets). I think it provides good indications of the sentiment of the more active traders. Who knows may be "tweeting" sentiment could be quantified to build momentum strategies...


- posts record profits, but the stock is still down 5%? (Sorry buddy!!!)
- not certain that the sell off is over, but these are good stocks (never hope...)
- I'd double my MSFT if I hadn't already (be careful don't hurt yourself, don't average just close the trade, it was wrong!)
- just coiling to pop lower again (yes)
- i think this is the time for jumping in
- headed further south...
- MSFT getting murdered
- somehow AAPL and MSFT are being manipulated, no idea how (it is manipulated only when it goes down?)

- look out could reach 26.22
- very disappointing

It seems to me that the majority of traders were looking at the stock from a bearish perspectives. Long guys were in disbelief because they already owned the stocks. Very few considering to go long though.

It is interesting to see what happens after the realease of earnings. Take a look at this post

Emini S&P: Another Setup For A Rebound

Another setup to trade another intraday rebound on Monday. After a performance not exactly exciting in 2009, this system has started a little better this year. It has traded already 8 times in January (6 winners and 2 losers).

Last trade on Thursday was good. This system is on the daily time frame. It is a contrarian system. It enters at the close and sell with a profit target the next day. If it is not filled it sells again with a profit target the day after. It has good results. The downside is that if the market is very directional and does not print rebounds it can take some bad hits (you need to have stop loss).

Is There A Bubble In China?

I read an interesting report about China:
China’s Investment Boom: the Great Leap into the Unknown

The idea is that capital spending in China cannot continue at this rate. The coming slowdown will have global consequences.
Let's see the main points supporting this thesis:
- China' s investment boom is unprecedented with growth highly dependent on capital spending. However, decreasing marginal returns on investment will lead to a pullback in capital expenditures. This can happen in a soft landing scenario or a hard landing one where a banking crisis would occur.
- Credit has played an important role in Chinese growth. Credit has expanded 50% more than GDP. If loans continue at this rate, in 2010 credit to GDP ratio will be 200% (similar to Japan in 1991 and US in 2008). Credit is going to luxury property and stocks, but not much into the real economy.
- Some say that China can afford this level of spending because of the low debt (23% of GDP) and huge reserves. However, the size of debt is understated. There are also other off-balance sheet liabilities that would bring the debt to GDP ratio to 62%. Moreover, inflows of money into China cannot fuel further capital expenditures.
- Capital expenditures went into manufacturing, real estate and infrastructure in the past years. Further expansion will not impact as much on growth as in the past.
- The manufacturing capacity is at developed country levels. The manufacturing base is mature with few areas for further expansion especially in traditional sectors (steel, cement, aluminium, energy). There is excess capacity in many sectors.
- Urbanisation rate is actually low in China. Moreover, the lending boom has boosted housing construction. There is an excess housing construction compared to the household formation. The price to income ratios are at extreme levels.

- China infrastructure is relatively well developed. Economic justification behind latest infrastructure projects is questionable.
- Consunption growth cannot replace the investment boom. Private consumption would have to grow 3 to 4 faster than in the past decade to compensate for the imminent retraction in investment.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

Gold climbed more than 1 percent on Tuesday to trade within striking distance of recent 18-month highs, as a tumbling dollar stirred investment buying ahead of an interest-rate decision by the U. S. Federal Reserve. Silver outperformed gold, gaining 1.38 percent on Comex.

India's gold imports in 2009 may fall to their lowest level since trade was liberalised 12 years ago as high prices have put off buyers in the world's biggest market for the metal, a top importer said on Tuesday. Total imports may fall to 500 to 550 tonnes, one of India's top three gold importers told.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,101.735 tonnes as of Sept 22, unchanged from the previous day.

The euro rose above $1.48 for the first time in a year, and the dollar index fell nearly 1 percent against other major currencies as dealers took advantage of deteriorating sentiment toward the dollar.

Noncommercial net long positions in gold futures in New York at an all-time high of 235,647 lots for the week ended Sept.
15 worried investors as it could spark a long liquidation.

A hedge fund run by RAB Capital that invests in gold has fallen about 17.5 percent since the start of June, the group said, missing a large rise in the gold price because of bad bets. The $35 million RAB Gold fund made the losses between June and August.

Dekel Golan is bullish about the future -- not only are gold prices soaring, but the CEO of Chaarat Gold Holdings Ltd secured funding from China to move the company's mining project in Kyrgyzstan closer to production.

The focus for the day would be on the outcome of FOMC meeting today. We expect precious metals to surge ahead in today's session on weaker dollar.

Expert Analysis for Gold and Silver Futures Trading

Gold turned over 1 percent lower on Wednesday as a stronger dollar dampened the metal's status as a hedge against the falling U. S. currency, even though the U. S. Federal Reserve said it would keep key interest rates at record lows. Silver too followed the fall in gold, paring 1.39 percent from its previous close on COMEX.

IN FOCUS:

The Federal Reserve Open Market Committee (FOMC) upgraded its assessment of the U. S. economy, saying activity had picked up after a severe downturn. The U. S. central bank kept key U. S. interest rates unchanged, and said it would keep rates low for an extended period.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,101.735 tonnes as of Sept 23, unchanged from the previous business day.

Peru gold miner Minera IRL Ltd said on Wednesday it has signed a deal to acquire control of the La Falda porphyry in the Maricunga gold belt of northern Chile, where it plans to begin drilling by the close of 2009.

India gold traders continued to trickle in on Wednesday as the rupee strengthened, making the dollar-quoted asset cheaper, to build up stocks in the middle of the festival season, dealers said.

The precious metals initially received a boost as the dollar fell to a one-year low against the euro. However, the dollar turned higher amid a weakening equities market.

India's gold purchases have picked up as the festive season gained steam in the world's largest consumer of bullion."India continues to buy but I guess other consumers are quite cautious this time around. I don't think people dare to cash in right now especially after the market has bounced back from below $1000," said a dealer in Singapore.

FUNDAMENTAL OUTLOOK:

Gold is expectedto trade sideways to downtoday. The risk aversion in the markets andthe expected weakness in jobless claims numbers to be reported later in the day may provide some strengthtothe dollar thereby pressurizing prices of precious metals.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

Gold: The counter is being range bound at the higher levels between 15750-880. The RSI is in the positive territory and ADXstillindicatesuptrend in the counter, thus any dip above 15650 (trend line support)can be a buying opportunity. Breaching 15890levels can trigger fresh upside in thepricestill 16150.

Silver: The counter looks shakyat the higher levels with close below the 7 DMAand RSI cross below the MA, however support is seen fromthe trend line around 26900. Thus fresh buying can be done only on close above the 7 DMA of 27285.

Expert Analysis for Gold and Silver Futures Trading

Gold: The traded downwards yesterday breaching the trend line support and closed below the short term moving averages. The RSI turned down with fall in prices while ADX gives a negative cross over. Thus the prices are expected to remain side-ways to down and prices can even test 15362 (21 DMA) if prices continue to remain weak below 15650 levels.

Silver: The counter finally moved below the trading range and gave a sharp correction till 26155 yesterday. The RSI dropped significantly with decline in prices, while the +DI and -DI looks conversion. Thus the counter is expected to remain weak as long as it remain below 27100 on closing basis, targeting 25500-600.

Expert Analysis for Gold and Silver Futures Trading

Gold: The counter remained positive in the yesterday’s session but failed to closed above 15600 levels. The directional index is still negative with –DI on the upside, but RSI seems to take support at this levels. Thus prices closing above 15600 can bring in upside movement in the counter, however breaching support at
15425 can trigger further downside till 15250.

Silver: The counter remained positive yesterday, while RSI is seen maintaining around 47-50 levels. In addition there is support at 25600 levels, which prices are maintaining. While ADX fails to give a clear direction. Thus prices are expected to move up to 26200-500 if maintains above 25600 levels.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

Gold ended a tad higher on Monday after initially rising toward $1,000 an ounce following the rise across the broad classes and thereby bolstering its status as a hedge against inflation.

October Silver futures on COMEX finished up 13.5 cents at $16.173 an ounce, about 1 percent up broadly tracking gold's strength.

The U. S. dollar rose against the euro and a basket of currencies despite the rally in U. S. stocks. The greenback dropped against the Japanese yen.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,094.107 tonnes as of Sept. 28, unchanged from the previous business day.

Germany's Bundesbank, the world's second-biggest holder of gold, said it will refrain from big gold sales in the first year of a new central bank gold sales agreement.

Lighting manufacturer Bright International Group Ltd said it would buy gold mines in China for a total of HK$7.41 billion
($956 million) to tap rising prices of the precious metal.

Speculators set record highs for a third straight week in their net long position in U. S. gold - Commodity Futures Trading Commission data. The noncommercial net long position in gold futures on the COMEX division of the New York Mercantile Exchange stood at an all-time high of 236,749 lots for the week ended Sept. 22.

Precious metals are expected to take direction from the movement in dollar and broader asset classes like equities and crude oil. We expect precious metals to trade slightly up in today’s session backed by weaker dollar as investors are likely to switch to riskier asset classes on expectations of strong U. S. consumer confidence data.

Expert Analysis for Gold and Silver Futures Trading

Precious metals remained subdued in the last trading session as they seem to have entered in to a consolidation phase after the recent rally. Gold ended slightly up in a choppy trading on Tuesday as a dollar bounce kept bullion investors largely on the sidelines. Silver futures ended in a negative territory, shedding 0.12 percent on COMEX.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,094.15 tonnes as of Sept. 29, unchanged from the previous business day.

Gold prices are up more than 10 percent so far this year, with the most recent leg higher driven by dollar weakness, technical momentum and concerns about potential inflation.

Gold and gold receivables held by euro zone central banks fell by 58 million euros to 231.9 billion euros in the week ending September 25, the European Central Bank said on Tuesday. Gold holdings fell because of the sale of gold by one euro zone central bank. The ECB said the move was consistent with the 2004 Central Bank Gold Agreement.

India gold futures may tread lower this week on expectations of a strong dollar overseas, dimming the yellow metal's appeal as an alternative investment.

India gold traders continued to stock-up on Tuesday to meet festival and wedding demand as prices stayed near their twoweek low, dealers said. "Sales have been up by one-and-a-half times compared to last month due to festivals. There are good orders below $990 (an ounce)," said a dealer with state-run bullion dealing bank in Mumbai.

The dollar rose against the euro and a basket of currencies and was up against the yen after seesawing on Tuesday.

Gold has opened higher on COMEX backed by a weakness in the dollar after giving a flat close yesterday. We expect this trend to reverse later in the day as the risk aversion and consolidation in the market may strengthen the dollar and thereby pressurize prices of precious metals.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

Gold: The counter is trading range bound since few sessions. The remained positive yesterday taking support at 15450 levels but closed below the trend line only. The counter is expected to continue sideways as there is no clear direction from the RSI and ADX indicates short term weakness with -DI on the upside. Thus prices may remain side-ways between 15425-15600, beyond 15625 prices may move positive.

Silver: The counter remains side-ways since past few sessions, simultaneously the ADX also remains directionless. The RSI however remains stable around 47-50, thus prices picking above 26300 can indicate a trend change. Till then counter is expected to remain range bound between 25750-26250.

Expert Analysis for Gold and Silver Futures Trading

Gold reclaimed $1,000 an ounce on Wednesday, rising 1.5 percent as a weaker dollar helped lift the precious metal to its best quarterly performance since early2008. Crude oil's rally and simmering geopolitical tensions inthe Middle East also supported gold.

Silver outperformed gold in the last trading session, gaining about 3 percent on COMEXcompared with 1.5 percent rise in gold.

IN FOCUS:

India's gold imports in September were provisionally around 35-40 tonnes, up from August but down by more than a quarter from 54 tonnes a year ago, the head of the Bombay Bullion Association said.

The world's largest gold-backed exchange-tradedfund, the SPDR Gold Trust, said its holdings stood at 1,095.327 tonnes as of Sept. 30, up 1.22 tonnes.

Bullion has risen about 7.6 percent in the past three months while the dollar has shed more than 4 percent. After its best quarterly performance since the first quarter of last year, gold has gained around 14 percent so far this year.

The physical market is gathering some support in India as jewelry demand picks up in the run-up to the festive period, but current prices are a stumbling block.

India's gold trade remained quiet on Wednesday as most banks, the primary sellers of the yellow metal, were shut for half- year book closing, dealers said.

Thousands of workers atSouth Africa's DRDGOLDon Tuesday called on the government to revoke its license and kept up pressure on the company to raise wages, with a strike entering its third week. Mexican Silver production dropped to 236,805 kg in July, down 3.4 percent compared with a year ago.

FUNDAMENTAL OUTLOOK:

Precious metals may trade lower in today’s session after a sharp rise in the last trading day. However, the focus would be on economic data from the U. S. Expectations of strong manufacturing data from U. S. and Euro zoneand unchanged jobless claims numbers may enhance risk appetitefollowed by weakness indollarand some fresh buyingin this complex.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

Gold: The counter traded very strong above the trend line and closed higher resisting the 21 DMA of 15733. Thus the intermediate side-ways trend hasended. The +DI have breached the –DI on the upside, indicating anuptrend in prices. Therefore the counter is expectedto remainpositive, on breaching 15750 levels next resistance is seen at 15900-16000 levels in near term.

Silver: The counter indicates strengthwith close above the 7 DMA. The RSI is seen risingfrom the 47 levels, while ADX remains side-ways with no clue on the trend. However the prices are now expected to remain above 26250 levels and march upwards to 26730 levels, breaching which prices can test 26900 levels.

Expert Analysis for Gold and Silver Futures Trading

Gold: The counter is facing pressure around 15700 level, we should wait for the triangular breakout. Prices are more likely to trade between 9 and 21 DMA i. e. 15570 and 15712 respectively. The RSI and MA remain flat with no signal on the direction. If the counter trades below 15570 we can expect it to test 15500 and
15440.

Silver: The counter has been facing pressure on higher levels around 26300 and 26580. Negative stochastic and close below short term MA i. e. 9 and 21 DMA indicates the short term weakness in the counter. We expect the counter to test 25500 if trades below 26000 mark.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

Gold stayed above $1,000 an ounce as the dollar remained pressured after last week's jobs data pushed the currency down broadly on concerns the U. S. economic recovery may not be as robust as previously thought. Silver prices too recovered following uptick in yellow metal.

Non-commercial net long positions in gold futures on the COMEX division of the New York Mercantile Exchange eased to
231,386 lots for the week ended Sept. 29 from an all-time high of 236,749 lots the week before, figures from the Commodity Futures Trading Commission showed. A sudden liquidation of speculative long positions in U. S. gold futures may cap upside in Gold futures.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,096.548 tonnes as of Oct. 4, up 0.1 percent or 1.221 tonnes from the previous business day.

The world's largest silver-backed exchange-traded fund, the iShares Silver Trust, said its bullion holdings nudged down
3.53 tonnes, or 0.04 percent, from the previous day to 8,594.22 tonnes on Friday, the lowest level since late May.

The dollar remained under pressure on Monday morning after falling against most major currencies on Friday. Finance ministers from the Group of Seven industrialised nations said at a meeting in Istanbul at the weekend that too much volatility in the foreign exchange market could hurt the global economy and financial system.

U. S. employers cut a larger-than-expected 263,000 jobs in September while the jobless rate climbed to a 26-year high of 9.8 percent, underlining the fragility of the economy's recovery from its worst recession in 70 years.

Today evening we have ISM Service Index reports from U. S. after the Nonfarm payrolls report disappointed investors last week. Dollar is likely to remain under pressure which may support precious metals during evening session. We are likely to see sideways to up movement in precious metals during the day.

Expert Analysis for Gold and Silver Futures Trading

Gold prices rose toward $1,020 an ounce on Monday on COMEX, gaining more than 1 percent, on a combination of dollar weakness, a turnaround in crude oil prices and lingering economic uncertainty. Silver jumped by over 2 percent on COMEX.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,098.073 tonnes as of Oct. 5, up 0.1 percent or 1.525 tonnes from the previous business day. The holdings rose to a record high of 1,134.03 tonnes on June 1.

Gold prices took some support from a rise in physical demand for the metal, with jewelry sales in India, the world's largest gold consumer last year, recovering ahead of the festival of Diwali this month.

Inflows into gold-backed exchange-traded funds dwindled in the third quarter as investors switched their interest to other products, with the holdings of six funds tracked by Reuters rising only 1 percent. The six -- the SPDR Gold Trust, ETF Securities' ETFS Physical Gold and Gold Bullion Securities, and products operated by Julius Baer, Zurich Cantonal Bank and iShares -- saw inflows of just over 697,000 ounces in Q3, against 995,000 ounces in the second quarter.

The strong rupee was helping offset a sharp rise in dollar gold prices, dealers said. Dealers also report buying from Iran after geopolitical tensions flared up in the Islamic republic last week.

The dollar fell on Monday after a meeting of G7 finance ministers in Istanbul brought no surprises, which the market took as a sign policy-makers are comfortable with a gradual dollar decline as part of global economic rebalancing.

The Institute for Supply Management's non-manufacturing index for September came in at 50.9 compared with 48.4 in August, and was the first time in eleven months the index breached the 50 reading that separates contraction from growth.

Precious metals climbed significantly last day on weaker dollar after IMF urged developed nations to continue with their quantitative easing programs. We expect gold to trade sideways to slightly up in the range of $1020-1025 during the day backed by continued weakness in the dollar.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

Gold: The counter shouted up in the later sessions yesterday from the bottom taking support from the 40 DMA and closed above the triangle. Thus the counter indicates strength in the counter. The RSI is seen improving while there is a positive crossover by the +DI. Therefore the overall move indicates positivity in the counter and breaching 15690 prices can move further targeting 15780 and 15850 in near term.

Silver: The counter rallied up yesterday in the later session closing above the triangle. The RSI is seen steadily improving at the lower levels, however there is no signal from the ADX. But the overall movement indicates upside in the counter above 26000 levels targeting 26700 and 26900 in near term.

Bullion Update and Market Outlook: Nirmal Bang

U. S. gold futures scaled an all-time high at $1,045 an ounce on Tuesday, gaining more than 2 percent as investors piled into the metal to preserve the value of their dollar-denominated assets against erosion by a weakening dollar and inflation.

Silver too followed the rise in gold and outperformed the yellow metal, gaining over 4 percent on COMEX and over 2 percent on MCX. The upside was capped in precious metals owing to the phenomenal rise in rupee against the dollar.

The dollar fell after an interest rate hike in Australia and rising equity prices bolstered expectations that the global economy was recovering. This dented safe-haven demand for the U. S. currency.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,100.514 tonnes as of Oct. 6, unchanged from the previous business day.

U. S. Treasury debt prices dropped amid increased supply of the securities reduced safe-haven demand as the stock market rallied. Benchmark 10-year U. S. Treasury notes dropped 9/32, sending their yields higher by 0.03 percentage point, to 3.26 percent.

European central banks sold 155 tonnes of gold in the fifth and final year of the second Central Bank Gold Sales Agreement
(CBGA), which ended on Sept. 26, data compiled by the industry-funded World Gold Council showed.

The U. S. dollar fell after Britain's Independent newspaper cited unidentified sources in Gulf Arab states and Chinese banking sources in Hong Kong in a report on a possible move to replace the dollar in oil trading. France's economy minister, later dismissed the report as "speculation," saying that a move to replace the dollar "is not on the agenda."

The dollar lost 0.42 percent against a basket of major currencies. The Australian dollar rose as high as $0.8919, and was last quoted at $0.8888.

Precious metals have tremendous support from weakness in the dollar and mounting inflationary concerns in the U. S. We expect precious metals to trade firm in the first half of the trading session. However, dollar may fall further later in the day on expectations of strong GDP number from Euro zone, boosting the prices in this complex.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

Gold: The counter have turned bullish after breaching the resistance at 15690 levels and close above all the short term moving averages. The RSI has breached the MA, while ADX indicates bullishness in the counter. Thus one can remain long in the counter at every dips above 15675 levels, as the counter has potential to inch-up higher to 16000 levels in near term.

Silver: The counter is bullish with a triangular break out and closing above all the moving averages. The RSI is ready for a positive crossover above the MA, while +DI has already crossed the –DI on the upside. Thus the counter looks bullish. Prices if maintain above the 7 DMA of 26325, we may see prices inching up to 27600-800 in near term.

Commodity Outlook for Gold by KEDIACOMMODITY

Gold yesterday as per expectation backed down from records hit overnight, accelerating losses as the U.S. dollar bounced and extended gains. Gold opened at 16795 and retreated during the early morning, finding support near 16780. Moderate dealer buying carried it from this level and managed to rally to an intraday high of 16884.

However this move reversed as the dollar advanced and equity markets slumped. Oil prices later tumbled as inventories far surpassed expectations and gold continued to fall, reaching a low of 16752. Light buying near the latter end of the session helped it recover from its lows to close at 16767.Now support for the gold MCX is seen at 16718 and below could see a test of 16669. Resistance is now likely to be seen at 16850, a move above could see prices testing 16933.

Trading Ideas:

GOLD TRADING RANGE IS 16550-16950.

GOLD RETREATS FROM RECORD HIGH 1123$ AS DOLLAR RISES .

BUY GOLD DEC @ 16725-16740 SL 16690 TGT 16762-16788-16805.MCX.

SPDR GOLD TRUST HOLDINGS UNCHANGED AT 1,114.443 TONNES.

ON MCX GOLD HAD GOT SUPPORT FROM THE RUPEE FACTOR WHICH HAD SHOWN WEAKNESS.

GOLD / SILVER RATIO IS AT 63.85. YESTERDAY GOLD FIX $ HAS CLOSED LOWER AT : 1114.75.

Gold glitters more due to dollar decline

The yellow metal has been scaling new heights every passing day and jumped to an all-time high as investors are losing interest in currencies due to their volatile nature. Gold has emerged as a safe investment mode among investors as indicated by skyrocketing prices of the yellow metal.

Prices of other precious metals including silver, platinum and palladium are also on rise and expected to pick up further due to apprehensions of further decline in dollar rates.

Wallace Ng, chief dealer with Fortis Bank in Hong Kong added, “Investors are taking shelter in gold. I see gold rising to $1,300 an ounce.”

Meanwhile, dollar rates declined further under the impact of more than expected rise in Japan’s economy which is the world’s second-largest economy. It has also being felt that continuous depreciation of US dollar may significantly impact global asset prices in the coming days.

Gold prices reported an increase of 0.7 percent to $1,126.07 an ounce due to heavy demand by investors. Gold contract for December surged 1 per cent to a record $1,127.90 an ounce on the Comex division of the New York Mercantile Exchange.

Gold price continue to rise to new highs as dollar tumbles to a 15-month record low

The record-shattering run of gold prices further extended on Thursday when the yellow metal hit a new record-high of above $1,195 an ounce, with the dollar index tumbling to its lowest level in the last 15 months.

On Thursday, gold prices touched $1,195.13 per ounce on the London Bullion Market, after Sri Lanka's central bank purchased 10 tonnes of gold from the International Monetary Fund (IMF) for $375 million.

Inflationary fears, weak dollar, and increasing moves by central banks towards diversification of assets into gold are the key factors that have contributed to the record highs of the precious metal.

With the recent sale of gold to Sri Lanka, the IMF has thus far sold 212 tonnes of gold to central banks. While India paid the IMF $6.7 billion to purchase 200 tonnes of the yellow metal between October 19 and 30; Mauritius purchased two tonnes, for $71.7 million, on November 11.

Commenting on the gold-price-rise scenario, Dick Poon, manager of precious metals at Heraeus in Hong Kong, said: "Everybody is bullish on gold, and everybody is looking at the signal central banks are sending. It's not just India or China, but most of the central banks, as well as funds, have changed their portfolios to include gold. So, everybody is looking at how much money they will invest in gold."

Gold Revisits its 17k Mark

Gold futures retouched the psychological Rs 17,000 mark, hitting a three-week high, as a weaker dollar overseas propelled the yellow metal's appeal as an alternative investment, analysts cited.

The US dollar reported its abysmal depth, touching the lowest in six weeks on Friday after US jobs data disappointed. The dollar index fell 0.6 per cent in comparison to other currencies.

The most-traded gold February contract on the Multi Commodity Exchange (MCX) was trading 0.89% higher at Rs. 17,051 per 10 grams at 2:44 pm. It hit an intra-day high of Rs. 17,054, a level last seen on 21 December.

"Euro has gained, and is supporting gold, range for the day would be Rs. 16,900-17,100", said Aurobinda Prasad, head of research, Karvy Comtrade. Also the rupee rose to its highest level since 15 months after a long period of weakness.

The head of the Bombay Bullion Association claimed that India imported 300-350 tons of gold in 2009, higher than the previous estimate of over 200 tons