MCX Gold futures are trading in a flat manner in the first hour of trade, as the market participants start off in a cautious manner after massive gains in the last session. Gold had a promising time in the wake of strong fund buying and prices tested fresh all time highs yet again with the disappointing US Non farm payrolls data boosting the sentiments and making the commodity overcome the all important $1400 per ounce mark with ease. The prices were seen finding this level fairly difficult to overcome earlier in the fortnight ended 3rd December. The Nonfarm payrolls rose by just 39,000 in November, far lower than the 155,000 gain expected and continued to reflect that labor markets are a big thorn in the flesh for the US economy in an otherwise improving climate.
MCX Gold futures tracked their global counterparts quite smoothly with the modest setback in the Indian rupee pushing the local gold to all time highs of Rs. 21000 per 10 grams for a while during last week. The February 2011 futures on the MCX soared above Rs. 20800 before dropping near Rs. 20500 per 10 grams. Prices yet again launched a powerful comeback with the dismal non-farm payrolls pushing up gold in dizzying manner as prices recaptured Rs. 20800.
The commodity closed at Rs. 20798 per 10 grams in the shortened session on Saturday and moved up above Rs. 20800 in the early moves today. The global prices seemed undeterred by the most rise in the US dollar in the Asian trades, holding on stubbornly above $1410 per ounce levels. The commodity quotes at $1413.90 per ounce, up $7.70 per ounce from the previous close. MCX Gold futures are quoting at Rs. 20792, down Rs. 6 from the previous close right now. The counter looks likely to witness selling pressure if Rs. 20800 levels do not manage to hold up in the day trades.
