Financial uncertainty in Europe is helping gold buck the Christmas season slump that typically comes as traders and investors cash in profits on gold made earlier this year. The weakness in the euro has probably prevented a larger selloff in gold. COMEX gold futures, per the February contract,
settled higher by $2.70, or 0.2%, at $1,388.80 per ounce. The modest advance in gold futures came despite a 0.2% rise to 80.78 in the US Dollar Index (DXY).
Comex gold futures prices ended modestly higher on some fresh safe haven investor buying demand. Concern regarding North Kore and South Korea saber rattling and about the European Union s debt crisis are supporting some fresh buying interest in the precious metals markets.
Indicators continue to show neutral tendencies with RSI in the neutral zone and MACD above the zero line indicating bullishness.
Recommendation: Buy on dips to 1,387-86, SL 1,376, TGT 1,402.
MCX Gold (Feb) Recommendation: Buy on dips to 20,523/20,508,
SL 20,360, TGT 20,745.