"BUY GOLD ABOVE 29530 TGT 29700/29900 SL 29450"
Gold: Gold rose 1 percent on Monday, boosted by lower equities and weak
U.S. data, leaving the metal well placed to log its best monthly
performance in four years as turmoil in wider markets increased its safe haven
appeal.
Bullion has rallied about 16 percent this year, rediscovering its role as a
shelter for risk-averse investors in the face of tumbling equities and fears
of a global economic slowdown.
Prices hit a one-year high of $1,260.60 this month, further supported by
the repricing of expectations for U.S. interest rate rises.
U.S. data showed contracts to buy previously owned U.S. homes fell to
their lowest level in a year in January.
Hedge funds and money managers raised their bullish stance in COMEX
gold to a one-year high, data showed on Friday.
Assets in SPDR Gold Trust, the world's top gold-backed exchange-traded
fund, rose to 762.41 tonnes on Friday, the highest in about a year.
Gold prices on the Shanghai Gold Exchange were at a premium of about
$2 an ounce, indicating buying interest from top consumer China.
Physical demand in India, however, remained subdued last week, with
the market falling to record discounts.
Outlook: We expect gold prices to trade positive on the back of safe haven buying.
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