Gold prices rose on Friday as higher than expected US unemployment claims pushed prices higher. Overall weak US job market growth has raised expectations that Fed will continue its bond buying program in 2013 and boosted gold's inflation hedge appeal. However, physical demand from China has remained weak, with premiums on the Shanghai Gold Exchange at multi-month lows of $2 an ounce. Import demand from India has is also weak due to government steps taken to curb the imports though premiums are at record high of $120 an ounce due to tight supplies ahead of the festive season. Gold prices are expected to move in range due to a weaker dollar and optimism over Fed's prolonged duration for bond buying program.
Over all, MCX Gold December future is in consolidation and not sustaining around higher levels. For the coming week 30000/29600 will act as a major support whereas 30840/31342 will act as a major resistance level in MCX Gold December future. For the next week in MCX Gold, trader can use sell on higher level strategy, if MCX Gold December future sustain below the levels of 30350 then it could test the levels 30200 /30000.
Technically, MCX Silver December futures is sideways and sustaining around higher levels. For the coming week 50000/52162 will act as major resistance levels where as 46762/45267 will act as major support in MCX Silver December futures. For the next week in MCX Silver futures, traders can use sell on higher level strategy, if MCX Silver December futures sustains below 48550 then it could test the levels of 47610/ 46770.