Gold market under long liquidation; Support seen at 33041

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Technically  market is under long liquidation as market has witnessed drop in open interest by -3.21% to settled at 16928 while prices down 158 rupees.

Now MCX Gold is getting support at 33041 and below same could see a test of 32913 and resistance is now likely to be seen at 33291, a move above could see prices testing 33413.

Gold fell pressured by a stronger dollar, but worries over slowing global and the spectre of another U.S. government shutdown kept the safe-haven metal above the key $1,300 level.

The U.S. Federal Reserve said it would be patient on further rate hikes, while the European Central Bank sounded less certain that it would start tightening policy later this year.

The Bank of England looks set to trim its forecasts for Britain’s already sluggish growth, reflecting the approach of a still uncertain Brexit in just 50 days’ time and a slowdown in many of the world’s big economies.

There are concerns over growth, disappointing earnings reports and another possible U.S. government shutdown in the wake of President Donald Trump’s State of the Union address. Reflecting lacklustre sentiment, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell for a fourth straight session.

The U.S. ’s Bureau of Economic Analysis said it would publish its advance fourth-quarter gross domestic product report on Feb. 28. The release of the report was initially scheduled for Jan. 30, but was delayed because of the 35-day partial shutdown of the federal government that ended on Jan. 25.

The report will include some of the data that would normally go into the second estimate, the Bureau of Economic Analysis said. Liquidity in gold markets is expected to remain light with closed for the Lunar New Year holiday this week.  

Trading Ideas:
–Gold trading range for the day is 32913-33413.
–Gold fell pressured by a stronger dollar, but worries over slowing growth limited the downside.
–BOE looks set to trim its forecasts for Britain’s already sluggish growth, reflecting the approach of a still uncertain Brexit in just 50 days’ time.
–U.S. Fed said it would be patient on further rate hikes, while the European Central Bank sounded less certain that it would start tightening policy later this year.

Courtesy: Kedia Commodities

Source: Commodityonline.com