MARKET OUTLOOK OF COMMODITY 25 JAN 2016

Gold : Gold fell on Friday as hints of more monetary stimulus from the European Central Bank weighed on the euro and pushed stocks higher, denting appetite for alternative assets. ECB President Mario Draghi said on Thursday that fading growth and inflation prospects will force the bank to review its policy stance in March, a strong signal that more easing could be coming within months. Even with the day's loss, gold was poised to end the week higher. Bullion has benefited from the risk aversion that hurt stocks and crude oil this month, though slow physical demand from major consumers China and India kept a lid on price gains. Gold premiums in China rose only slightly this week and sellers in India offered discounts given poor demand. Holdings of the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, rose a further 1.8 tonnes on Thursday, data from the fund showed. That brought its inflow for the week to 4.2 tonnes. Outlook We expect gold prices to trade positive on the back of statements from ECB president Mario Draghi.

Technical Outlook

Gold Strategy

S2 S1 26000 26100

 Close 26160

R1 R2  26300 26400

Above is MCX Gold Oct daily chart. It suggests that prices are making higher highs and lows. They are also support by weaker rupee against dollar. Furthermore, it is expected to gain upto 26745 and 27000 levels. On the flip side, immediate support is located at 26020-26120 zone. Any failure to hold this support will turn sentiment on the downside.