Gold market under short covering; Support seen at 31002

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Technically Gold market is under short covering as market has witnessed drop in by 1.57% to settled at 13073 while prices up 14 rupees.

Now MCX Gold is getting support at 31002 and below same could see a test of 30915 levels and resistance is now likely to be seen at 31236, a move above could see prices testing 31383.

Gold steadied as the dollar declined amid expectations of a slowdown in the pace of U.S. interest rate hikes, with seeking refuge in the bullion from a sell-off in global stocks.

The dollar fell about 0.5 percent as U.S. Treasury yields tumbled and traders scaled back expectations on the number of hikes the Fed would implement amid weakening economic data and market volatility.

The inched lower, weighed down by worries about lower U.S. long-term Treasury yields and expectations of a fewer rate hikes by the U.S. central bank. Atlanta bank president Raphael Bostic on Thursday said he felt the Fed should continue raising rates towards a “neutral” level, noting that despite recent market volatility and increasing uncertainty, he did not see “any indications of a material weakening in the macroeconomic data at the moment.”

The Federal Reserve is “helping community banks remain competitive” and continue to play a central role in rural communities, in part by reducing regulations for smaller banks, Fed Governor Randal Quarles told the Stanford Institute for Economic Policy Research.

He did not comment on the economic outlook or monetary policy in his prepared remarks, which focused on banks in the Western United States. Gold-backed exchange-traded funds (ETFs) registered inflows in all the world’s major regions in November, as volatile stock markets fuelled flight-to-safety buying, the World Gold Council said on Thursday.

Trading Ideas:
–Gold trading range for the day is 30915-31383.
–Gold steadied as the dollar declined amid expectations of a slowdown in the pace of U.S. interest rate hikes.
–Fed’s Powell: Financial stability is now more integral for monetary policy.
–Fed Vice Chair Clarida the central bank should continue to gradually raise interest rates, but was “especially important” to monitor economic data.

Courtesy: Kedia Commodities

Source: Commodityonline.com