Spot Gold prices traded lower last Friday and traded range bound overall as the rally went out of steam. Though the weakness in the dollar persisted, markets found it difficult to pull off higher. In the near term we expect the dollar to witness downside and this factor could support gold prices. Fundamentally, demand has not picked up sharply but factors like economic optimism coupled with a fractured state of the dollar are helping the yellow metal trade higher. The dollar rebounded on Friday and this put pressure on gold prices as the yellow metal is currently taking cues from the movement in the currency market. The dollar gained on Friday as economic data from the UK was bearish and that led to a stronger dollar. But the dollar remains in the downtrend and as long as the dollar remains weak gold prices will continue to trade higher. In the currency market, The Euro gained 0.7% in the last week against the dollar as a rise in risk appetite led to demand for higher-yielding assets. The currency also received support as a solid IFO index coupled with strong European PMI supported the Euro against the USD. For the day, support is seen at 1.4970/1.4940 whereas resistance is seen at 1.5045/1.5090. The Indian Rupee depreciated last week to close at 46.49. The currency snapped a six straight weekly rise last week. For the day, support is seen at 46.35/46.20 whereas resistance is seen at 46.60/46.75. Interest rates in the US are not expected to rise in the near-term and this could put pressure on the Dollar Index. Until there is no change in the interest rate policy, we expect the dollar to trade lower as a rise in risk appetite is boosting demand for higher-yielding and more riskier investment assets. This has reduced the demand for safe-haven assets like the dollar. Until the dollar trades lower, we expect gold prices to trade with a positive bias. This week, the US is expected to announce data on consumer confidence, manufacturing index, new home sales, unemployment claims, personal spending and personal income this week. If the data comes on the positive side then the dollar could witness further weakness and that could continue to provide upside support to gold prices. Today, there is no economic data from the US. On intraday basis, Spot Gold prices have immediate support at $1046/$1039 whereas resistance is seen at $1065/$1075. Spot Silver prices shall find support at $17.40/$17.15 whereas resistance is seen at $17.90/$18.18. MCX October Gold has support at 15960/15945 whereas resistance is seen at 15995/16015. MCX Dec Silver shall find support at 27410/27385 whereas resistance is seen at 27470/27495 levels.

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