GOLD ANALYSIS FOR TODAY 02 MAR 2016

GOLD ALMOST HIT FIRST TGT 29700 MADE HIGH OF 29680!!!!!!!!!!!!

“BUY GOLD APR @ 29100 SL 28960 TGT 29350-29520.”

Gold : Gold trading range for the day is 28765-30069. Gold dropped into the red after data showed manufacturing activity in the U.S. contracted again in February, but at a slower pace than in the preceding month. The better than ISM data was seen as supporting the case for higher interest rates at some point later this year, sending dollar broadly higher. India's gold imports in January surged 62 percent compared with the same period last year.

Gold on MCX settled down -0.97% at 29226 reversing gains, falling into the red after data showed manufacturing activity in the U.S. contracted again in February, but at a slower pace than in the preceding month. The ISM reported that its Manufacturing Index rose 1.3 points to 49.5 in February, slightly above consensus forecasts of a 0.3 increase to 48.5. Employment, which has hovered near seven-year lows in recent months, showed some signs of breaking through after jumping 2.6 points to 48.5. Production also soared 2.6 points last months to 52.8.

The Federal Reserve is closely observing incoming economic data, ahead of its next interest rate decision on March 16. Last week, hawkish policymakers on the Federal Open Market Committee (FOMC) received positive news when reports indicated that core inflation in January rose by the highest annual level in three years. For now, gold was seeing support from flows into bullion-backed exchange traded funds (ETF). Assets in SPDR Gold Trust, the world's top gold ETF, rose 1.15 percent to 786.20 tones on Tuesday, the highest since September 2014. Although global economic concerns have prompted investors to channel money into gold, rising prices have muted some physical demand in the major Asian gold consuming regions. India, the second largest consumer, has reintroduced a local sales tax on gold jewellery, in a move officials hope will dampen demand. Indian jewellers will go on indefinite strike from Tuesday in protest. Despite the taxes, India's gold imports surged 62 percent in January to 93.3 tones, a news agency reported on Tuesday.

Technically now Gold is getting support at 28996 and below same could see a test of 28765 level, And resistance is now likely to be seen at 29648, a move above could see prices testing 30069.