Fundamental Precious Metals (2010-01-20)

The previous day, gold added $4.90 or 0.43% to close at $1138.10 an ounce. Gold Price was setin London on Tuesday at $1133.00 per ounce during the PM fixing declining from $1134.00 at the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, remained unchanged at 1,111.92 metric tons on January 19.

Spot gold is traded at $1131.36 an ounce, recording a high of $1141.45 and a low of $1127.40. Next, support is spotted at $1125.00 while resistance is seen at $1137.00.

Gold, after rallying in 2009 to new records, may slow down as the U.S. dollar rebounded again for the second day. The green currency advanced once again, after falling sharply after the downbeat U.S. jobs report released on January 8. It gained against a basket of major currencies as indicated by the dollar index, which increased to 77.88 from the day's opening at 77.51. The breakout of 77.80 level may pave the way for further rise.

Concerns in the market regarding the strength of recovery and hardships that may face it, is enhancing demand on lower-yielding currencies as hedges. Asian and European stocks dropped today amid fears in markets regarding China's possible exit of stimulus and debt woes in Greece.

Other precious metals also fell today; platinum slumped to $1630.40 from the day's opening at $1643.40, and palladium declined to $457.50 from $460.20.