Gold futures pared the early gains with prices trading near a two-week low as investors were hesitant to buy into the market amid a weak technical outlook. Gold futures were also weighed by easing concerns over the global economic outlook. Traders sold the metal after futures failed to breach resistance at the key psychological level of $1,700 an-ounce in the past few sessions, triggering fresh sell orders amid bearish chart signals. Gold traders are now looking ahead to the Federal Reserve's policy-setting meeting on Wednesday, for further hints on the future of its ultra-loose monetary policy. Investors will also be anticipating Wednesday's preliminary data on U.S. fourth quarter economic growth, as well as Friday's U.S.non farm payrolls report, as markets attempt to gauge the strength of the U.S. economic recovery. Any improvement in the U.S. economy could scale back expectations for further easing from the Fed, boosting the U.S. dollar and weighing on greenback-denominated commodity prices. Gold futures rallied to $1,696.25 a troy ounce on January 17, but lacked momentum to move higher. Gold futures for February delivery retreated 0.5% on Friday to settle the week at $1,658.80 a troy ounce.
Gold prices eased from the intraday high of $1663.65 and trades at $1656.05, down $2.65 per ounce. Euro quotes at $1.3443, down 0.07% from last close. Silver March contract is quoting down at $30.868, down 1.09% per ounce. Most of the European equities traded higher while dollar denominated commodities pared early gains as greenback strengthened against the Euro.
Local gold off the high weighed by weak global cues, however losses were limited by weak rupee against the greenback.The MCX Gold February contract quotes at Rs 30,321, down Rs 11 from last close, easing from high Rs 30,413 level. The counter is having strong support at Rs 30,150 and resistance at Rs 30,490 level. Local rupee closed weaker by 0.39% at Rs 53.91 per USD. MCX Silver March quotes at Rs 57,790, down 0.79% from last close.
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