MCX Gold under short covering; Support seen at 34961

0
19

MCX under long liquidation; Support seen at 3743

MCX Silver under fresh buying; Resistance seen at 40939

NCDEX Chana under short covering; Resistance seen at 4345

Short Covering seen in MCX Cotton

Article continues below Advertisement...

NCDEX Jeera under fresh selling; Support seen at 17980

Technically Gold market is under short covering as market has witnessed drop in open interest by 6.31% to settled at 15247 while prices up 66 rupees.

Now MCX Gold is getting support at 34961 and below same could see a test of 34765 levels, and resistance is now likely to be seen at 35272, a move above could see prices testing 35387.

Gold on MCX settled up 0.19% at 35156 as expectations of a rate cut later this month weighed on the dollar and prompted investors to seek the safe haven commodity.Meanwhile, the Fed is widely expected to lower interest rates by 25 basis points at its policy meeting at the end of the month, with some in the market even betting on a 50 basis point cut.

The Fed reported that the U.S. economy continued growing at a “modest” rate in recent weeks, with consumers continuing to spend and a “generally positive” outlook overall even in the face of disruptions caused by the U.S. trade policy. Earlier in the week, U.S. President Donald Trump kept up the pressure on Beijing with a threat to put tariffs on another $325 billion of Chinese goods.

The Chairman Jerome Powell told a dinner audience at the Bank of in Paris the central bank is “carefully monitoring” downside risks to U.S. growth and “will act as appropriate to sustain the expansion.”

Hopes about a steep cut in interest rate faded on Tuesday after data showed a bigger than expected increase in retail sales in June and factory output too rose more than expected in the month. A report from the said housing starts slid by 0.9% to an annual rate of 1.253 million in June after slipping by 0.4% to a revised rate of 1.265 million in May.

Trading Ideas:
–Gold trading range for the day is 34765-35387.
–Gold gained as expectations of a rate cut later this month weighed on the dollar and prompted investors to seek the safe haven commodity.
–The () said the greenback was overvalued by 6% to 12%, based on near-term economic fundamentals.
–U.S. interest rates futures implied traders fully expect the Fed to cut rates at its upcoming policy meeting on July 30-31 with a 35% chance for a half-point decrease.

Courtesy: Kedia Commodities

Source: Commodityonline.com