This week is expected to be an action packed one. Experts anticipate the market to find direction only after the international events like US Presidential election and Bank of England and European central bank meeting. In an attempt to fight global crises countries world over like United States of America, Japan, Norway, Hong Kong, China, Taiwan and India have cut down their interest rates. Monday (3 November, 2008) will be another volatile day in the market with US dollar playing a pivotal role.
“The price for gold might go up as the US dollar is in under pressure. It is expected to pull back towards Rs11,800/10 grams to Rs11,850/10 grams on Monday,” Harish Galipelli from Karvy Comtarde said. The overall trend will remain bearish,” he added.
Giving a technical view, Chitnan Karnani of Insignia Consultants said gold December contract on COMEX (New York Mercantile Exchange’s Commodity Exchange) needs to close over $726/ounce to be in bullish zone. “A close over $769/ounce will be very positive for next week.”
“Silver needs to hold $985/ ounce for $1070/ounce. On the lower side a fall below $930/ounce will result in $880/ounce and $826/ounce. Silver needs to close over $985/ounce on Monday else it will trade in $830-$11200/ounce wider range this week,” he added.