Gold futures flat and MCX silver got higher.

Mumbai - Gold, Silver futures traded flat; while silver futures recovered from lower levele on buying support on Multi Commodity Exchange here on Friday. In the overseas market gold traded down on weak euro against dollar. In the overseas market traded up USD 2.75 at 1170.80/oz. MCX gold futures are not taking cues and traded mostly flat. 

MCX's most active Gold August contract opened down Rs 12 at Rs 17,750/10gm and moved between Rs.17,704- 17,795/10gm. At 5.33 pm IST, the contract traded un changed at Rs.17,762/10gm. August contract volumes recorded 12822 lots. 

MCX gold mini, the most active August contract opened up Rs.13 at Rs.17,777/10gm and currently traded down Rs.23 at Rs.17,741/10gm. It fluctuated between Rs.17,724-17,780/10gm. Total volumes in August contract clocked 12628 lots. 

Spot gold prices closed at $1167/oz on Thursday.

MARKET RECAP

Spot gold prices gained for a second consecutive day to close at $1167/oz on Thursday. Lower prices attracted some investors towards the yellow metal. Moreover, the weakness in the US dollar index (DX) also supported the gold prices yesterday. However, sharp trigger was not witnessed in the yellow metal prices on the back of easing concerns over a sovereign debt crisis in the Euro zone. Gold prices have suffered drastically in the last couple of sessions after the announcement of the stress test results of the Euro zone banks. Concerns over a sovereign debt crisis are easing and demand for safer investments like gold is declining.

OUTLOOK

Financial markets continue to trade on a choppy note. Hence, the DX is expected to strengthen today as choppy equities will increase demand for the currency as a safe-haven. This factor will exert pressure on the gold prices as the yellow metal has the tendency of trading inversely to the greenback.

On intraday basis, Spot Gold prices have immediate support at $1160/$1153 whereas resistance is seen at $1173/$1180. Spot Silver prices shall find support at $17.26/$17.05 whereas resistance is seen at $17.71/$17.95 levels.

Crude prices continue to decline on Wednesday.

Crude prices continued to decline on Wednesday pressured by the API report of rise in crude supplies to 3.1 million barrels last week and disappointing durable goods orders data. New orders for long-lasting US manufactured goods unexpectedly fell for a second straight month in June, posting their largest decline since August. The overall trade remained cautious ahead of the US Energy Information Administration weekly oil inventory data on Thursday.

Benchmark crude for September delivery fell 41 cents, or 0.53 percent, to $77.09 a barrel, after trading in a range of $76.88 to $77.74 on the New York Mercantile Exchange. In London Brent crude slipped 7 cents to settle at $76.06 a barrel on the ICE.

Gold and Silver daily review.

MARKET ROUNDUP

U.S. Gold futures settled at a three-month low on Tuesday, losing 2 percent after option expiration and weak consumer confidence data triggered technical selling.

IN FOCUS

- The world's largest gold-backed exchangetraded fund, SPDR Gold Trust said its holdings fell to 1,300.829 tonnes by July 27, down 0.913 tonnes from the previous business day.

- The world's largest silver-backed exchange-traded fund, the iShares Silver Trust, said its holdings stood at 9185.29 tonnes as of 27th July, unchanged from the previous business day.

- Australia-listed gold miner Lihir Gold said on Wednesday its second-quarter output rose 6 percent from the previous quarter and it remained on track to meet full-year production guidance. 

RBI raises interest rates, more tightening seen.

The Reserve Bank of India (RBI) raised interest rates more forcefully than expected on Tuesday to fight inflation that is on track to hit double digits for a sixth straight month, setting the stage for more policy tightening.One-year overnight interest rate swap rates jumped after the RBI notched up its fourth rate rise this year and said it was "imperative" to normalise policy in line with the economy's growth and inflation.

A clutch of Asian central banks have started to raise interest rates from the low levels reached during the world wide downturn as the region leads the global recovery.But inflation has risen sharply in India, sparking public protests and raising the heat for the ruling party in parliament, in contrast to several western economies that are worried more about disinflation as their recoveries show signs of faltering.

"The dominant concern that has shaped the monetary policy stance in this review is high inflation," the central bank said, striking its most hawkish tone since the global downturn."With growth taking firm hold, the balance of policy stance has to shift decisively to containing inflation and anchoring inflationary expectations," it said.

GOLD, SILVER CLOSE HIGHER ON MCX .

Mumbai - Gold, Silver futures closed with mild gains on Multi Commodity Exchange on buying support Saturday. 

On MCX, Gold August futures closed up Rs 3/10gm and silver September futures up Rs 12/kg. 

MCX's most active gold August contract closed at Rs 18,257/10gm and moved between Rs 18,240- 18,259/10gm. Contract volume was 1,296 lots. 

MCX Gold mini, the most active August ended at Rs 18,240/10gm and fluctuated between Rs 18,348-18,309/10gm. Total volume was 2,741 lots.