Gold Outlook: May extend gain Mon on weak dollar, weak US data

Gold Outlook: May extend gain Mon on weak dollar, weak US data

 

   MUMBAI, FEB 16 (TickerNews Service): Gold may extend gain for a second straight trading session Monday after dollar weakened against the other currencies and on weak economic data from United States, the world's biggest economy, said analysts.

  "Gold will rise on weak dollar after US consumer sentiments unexpectedly fell in February," said Ajay Kumar Kedia an analyst with Kedia Commodities.

  Prices of the bullion will be supported as weak dollar globally boosts investors' appetite for the dollar denominated commodities, said analysts.

  At 9:35AM dollar index, which measures the strength of greenback against its six major trading partners, dropped 0.29% to 93.94.

  Prices of the bullion will also be up after US consumer sentiments data fell unexpectedly in February from 11-year high amid worries over slowing economic growth of the country, increasing safe haven appeal for the yellow metal, said analysts.

  US Reuters/Michigan consumer sentiment index eased to 93.6 in February compared to analysts expectation of 98.1 and 98.1 a month ago, government data showed.

  Gold price will also be supported by safe haven appeal as investors are caution ahead of Greece's talks, over its debt and austerity measures that due to resume on Monday as the latest Euro-zone meeting ended with no agreement, said analysts.

  On Sunday, Greece said that it was confident of reaching agreement in negotiations with its euro zone partners but reiterated it would not accept harsh austerity strings in any debt pact.

   On Friday, gold for April delivery at the close of trades rose 0.64% to Rs 26,691 per 10 grams on the Multi-Commodity Exchange (MCX).

  Gold prices rose 0.46% to $ 1,232.70 per ounce on the Comex exchange.

  Gold prices are likely to find support at Rs 26,559-26,662 per 10 grams while resistance is seen at Rs 26,761-26,824 per 10 grams today, said Ramesh Chenchala, technical analysts with Karvy Comtrade.

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