On Tuesday, prices of gold faced stiff resistance after hitting an all-time high of Rs. 11,800 per 10 gram on MCX and $933.1 an ounce in the comex spot markets on account of strong durable goods orders number. Gold had slipped to $922.91 an ounce from historic highs ahead of a key interest rate decision by the US Federal on profit taking and a decline in dollar against euro.
According to traders, gold is well supported on persisting supply concerns even though South African miners planned to resume production on Wednesday after the state power firm has promised to boost supplies this week.
"COMEX gold February is expected to bounce-back from current levels and trade in the ranges of $915-$934 levels. MCX February contract is expected to rally further from current levels and trade in the ranges of Rs 11,650-11,810 levels," Debjyoti Chatterjee, analyst with MAPE ADMISI, said.
US Federal is expected to follow up last week's emergency 75 basis point rate cut with another cut of 25 or 50 basis points after a two days' meeting ending on Wednesday. Investors are also keeping an eye on this week's OPEC meeting in Vienna, where the group is expected to leave production levels unchanged.
In macro-economic data, traders would be closely watching FOMC Rate Decision, Mortgage Market data and 4th quarter US GDP report for further course into markets.