Daily Gold Report - Gold prices inspite of FOMC MEETING MINUTES trading in a tight range, tapering of QE3 as planned later this year will be implemented if US economy recovers till the meeting due in September.
Gold dipped modestly but recovered since there was no particular announcement that when tapering will begin but at the end of the meeting few said tapering might be needed soon.
Gold prices made high in the opening sessions of the minutes till $1378 near to the Monday's high of $ 1384. In India the big picture, the depreciation of Indian Rupee hits the worst in a series of 3 days.Indian Rupee yesterday marked a life low of Rs 64.55 vulnerable for Current Account Deficit, though India is growing above 5% but the depreciation of currency is being a classic example set for the rest of the countries.
"We remain bearish on the rupee on concerns of lower growth, Fed-tapering fears and weakening sentiment given general elections next year," Amit Agrawal, an analyst at Societe Generale SA in Bangalore, wrote in a research report today. The bank predicts the currency will fall to 66.25 per dollar by the end of this year.
The Game play for Gold prices is the derivation of Indian Rupee towards USD .Remember these levels. <u>Only break above $1343> $1368 > $1380> $1402. If fails to break then $13022 < $1304 < $1286 < $1252 then below $1200 possible.</u>
Yesterday again Gold prices came till $1380 and today in the opening session Gold is trading near $1365.