DAILY GOLD TREND FOR 03 DEC 2010

KEEP CLOSE  AN EYE ON US UNEMPLOYMENT DATA PRODUCE AT 7.00PM TODAY. 

The Gold Market has gone into buy mode this week and the facts remain the same.  We still are dealing with our recovery stimulus and uncertainty within the US Markets, the Euro Zone still faces insolvent countries (luckily only dealing with one at a time so far) and China still seems to be the powerhouse leading the economic recovery.  China also is allied to North Korea which gives further global tensions.   Since the Gold Market has held its strength and has been favored by speculators and Managed Funds, it may still give us a bounce going into the holiday season.  After coming off the highs this year of $1424.30 so far a retracement is eminent.  Another run would not surprise me and as a matter of fact, I am expecting it with the global sovereign debt and the Korea conflict situation.  I do not see instant resolve for any of these problems.  If things heat up, it could potentially take the Gold Market into some new highs.  We look to buy the dips as this month should supply plenty..................said Leslie Burton - InsideFutures.com.


DOLLAR FACTOR

Why am I elaborating on the US Dollar as a Gold Trader?  While the US Dollar remains weighted against the six major currencies, Gold may be boosted by a variety of factors: It is purchased as a safe-haven by investors shifting from low interest bearing government bonds and other products that cannot keep up with the rate of inflation.  The Gold may be traded in physical bullion, ETF's, XAU, Spider Gold Trust and futures contracts to name a few.  Typically, in years past, the currency of a country could be backed by physical gold.  The XAU has traded lower.  The Exchange Traded Fund (GLD) reported holdings rose. 


The Shanghai Gold Exchange reported that gold imports had risen over the last 10 months to 209.72 tonnes..


MY COUNTS FOR 03/12 FOR FEB GOLD


RESISTENCE #2................$ 1406.50(MCX Rs 20807)
RESISTENCE # 1...............$ 1398.00(MCX Rs 20683)
PIVOT ................................$ 1391.00(MCX Rs 20608)
SUPPORT #1......................$ 1382.50(MCX Rs 20484)
SUPPORT #2......................$ 1376.50(MCX Rs 20409)

RECOMMENDATION : KEEP BUYING ON DIP OR SUPPORT AND RESISTENCE LEVEL
(Because of MCX(India) Dec gold future contract expiry today )

RAHUL KUMAR
GOLD Analysist

Comments me : bestech30@gmail.com