GOLD

FUNDAMENTALS

Gold declined sharply in a choppy trade on Friday as weakness in crude oil prices and volatility in dollar pressured the prices. The gold futures fell sharply early on Friday as crude oil prices tumbled and after a robust U.S. jobs report lowered the chance of a large cut in key interest rates by the Federal Reserve next week. But weakness in dollar after weak consumer confidence data then supported it to recoup some of the earlier losses. Gold futures for February delivery at COMEX shed $6.90 to end at $800.20 an ounce. The contract saw the lows of $796.80 an ounce early in the session.

The dollar traded mixed on the last trading day of the week. After the jobs data, the U.S. dollar was mixed, rising against the yen, and trading flat against the euro. The dollar index declined 0.1% at 76.295.  The U.S. economy added 94,000 nonfarm payroll jobs in November, according to the Labor Department. The market was expecting growth of 85,000 jobs. Strong jobs data faded the chances of 50 basis point interest rate hike by Fed.

India's gold imports declined for the second consecutive month from a year earlier as high gold prices dented jewelry demand during the traditional peak consumption season. Purchases in November fell to 12 metric tons from 59 tons a year earlier, according to the Bombay Bullion Association. Imports slumped to 14 tons in October from 68 tons a year earlier.

TECHNICALS

The prices closed below short term and medium term EMAs, which supports bears. MACD is showing gradual fall in bullish momentum. Stochastic is running upward in normal region. The gold futures are likely to trade range bound during Saturday’s short session.

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