03 Dec Tuesday View

Previous support that was holding the price, USD 1235, 38.2 % retracement of USD 1180 to USD 1433 gave up yesterday and price slipped to USD 1220 level.  A better-than-expected U.S. manufacturing data prompted funds and speculators to increase bearish bets on bullion. The precious metal's drop marked a sharp contrast to other asset classes. U.S. equities stayed largely flat and U.S. Treasuries prices fell 0.5 percent, while the Dollar Index climbed 0.3 percent. Bullion's losses widened after data showed the U.S. manufacturing sector expanded last month at its fastest pace in two and half years, while hiring also accelerated. Yesterday's price fall affirmed the bearish view and a test of June 2013 low of USD 1180, with no major support seen in between. Resistance is at the previous support level of around USD 1235 :)