Gold seen higher on dollar, crude

Gold seen higher on dollar, crude
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First Published: Mon, Aug 03 2009. 07 24 PM IST
Updated: Mon, Aug 03 2009. 07 24 PM IST
Mumbai: Gold futures may trade higher this week on expectations of a weak dollar overseas coupled with rising crude oil, analysts said.
“Weakening dollar and rising crude would support gold,” said Gnanasekar Thiagarajan, director, Commtrendz Research in Mumbai.
“Gold would find support at Rs14,720-14,725,” said Thiagarajan.
The most-traded gold October was 0.11% higher at Rs14,838 per 10 grams at 5:52 pm, after losing 0.5% last week. The dollar hit its lowest level in 2009 as solid banking earnings and a UK survey showing manufacturing activity unexpectedly expanding boosted the view that the global economy is over the worst.
Gold is considered an alternate investment to a weak dollar. Oil rose to a one-month high near $71 a barrel as positive Chinese economic data and firmer equities bolstered hopes of economic recovery and higher energy demand. Gold is considered a safe hedge against inflation. Buying is recommended at Rs14,750, with a target of Rs14,955, with a stop-loss of Rs14,690, said Thiagarajan. “If gold breaches the resistance level of Rs15,000, then it is likely to touch Rs15,300,” said Parag Joshi, a technical analyst with Way 2 Wealth Securities.
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First Published: Mon, Aug 03 2009. 07 24 PM IST
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