Gold steadied as US consumers appear to be a lot more optimistic than expected.

Gold yesterday settled up by 0.13% at 59316 as U.S. consumers appear to be a lot more optimistic than expected. The University of Michigan said the preliminary reading of its Consumer Sentiment Index jumped to 72.6 up from June’s revised reading of 64.4. Indian dealers offered discounts on physical purchases for a third straight week as higher domestic prices depressed jewellery demand in most Asian centres and prompted selling to take advantage of elevated rates. Indian dealers offered a discount of up to $6 an ounce over official domestic prices, from last week’s discount of $7.

In top consumer China, premiums ranged between $10 and $14. In Hong Kong, gold was sold at $0.50-$2.50 premiums, while Singapore dealers charged $1.50-$3 premiums. In Japan, gold was sold at between par with global price levels and a $0.50 premium. Perth Mint’s gold product sales in June rose marginally from the previous month, while those of silver hit their lowest levels in six months. Monthly sales of gold coins and minted bars touched 73,124 ounces last month, up from 72,889 in May, and rose 12% on a year-on-year basis.

Technically market is under short covering as the market has witnessed a drop in open interest by -4.3% to settle at 9173 while prices are up 77 rupees, now Gold is getting support at 59179 and below same could see a test of 59041 levels, and resistance is now likely to be seen at 59417, a move above could see prices testing 59517.