Gold may advance further this week on increased demand from investors for the metal as a safe bet in the face of a deteriorating world economy and declining investors’ risk appetite for other asset classes.
According to a forecast by Angel Broking, the metal may find strong support around Rs 13,800 - 13,770 per 10 gm. Trading below Rs 13,770 would lead to a further lowering of prices, initially towards Rs 13,670 and then to Rs 13,400.
The broking firm, however, sets the resistance level around Rs 14,290-14,310 and strong resistance around Rs 14,430-14,450. Trading above Rs 14,450 would lead to higher prices initially towards Rs 14,600 then to Rs 14,900.
In dollar terms, however, the yellow metal is likely to remain bullish to $940 an oz because of uncertainty regarding dollar and strong support in precious metals through exchange-traded fund (ETF). For example, gold holding in the SPDR Gold Trust, world’s largest gold-backed ETF, rose 1.6 per cent on Friday to 819.11 tonnes, equal to about four months of global mine production.
“Investment in gold through ETF will be the real driver of physical gold prices in the weeks ahead,” said an analyst with a leading research house.
Meanwhile, gold for immediate delivery in London advanced as much as 5.1 per cent on Friday to hit a three-month high at $900.55 an oz, but closed at $896.14 on profit booking.
Gold futures for February delivery climbed 2 per cent on Friday to $875.80 on the Comex division of the New York Mercantile Exchange. Earlier, the price reached $884, the highest since January 5.