MCX Gold under long liquidation; Support seen at 37733

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Technically market is under long liquidation as market has witnessed drop in open interest by 3.63% to settled at 9947 while prices down 167 rupees.

Now MCX Gold is getting support at 37733 and below same could see a test of 37618 levels, and resistance is now likely to be seen at 37964, a move above could see prices testing 38080.

Gold on MCX settled down 0.44% at 37849 as awaited news on the U.S. central bank’s stance on monetary policy, while some easing of the oil market’s woes dented demand for safe-haven bullion.

Denting safe-haven appeal for gold, Saudi Arabia sought to reassure markets after the attack halved its output, saying full production would be restored by the month’s end. U.S. President Donald Trump has indicated the U.S. is prepared to respond militarily but has stopped short of definitively blaming for the attacks. On the U.S. economic front, the Fed released a report showing industrial production rebounded by much more than anticipated in the month of August.

The report said industrial production climbed by 0.6% in August after edging down by a revised 0.1% in August. A separate report from the National Association of Home Builders showed an unexpected improvement in U.S. homebuilder confidence in the month of September. Deputy trade negotiators for the United States and China will meet in Washington beginning, a spokesman for the U.S. Trade Representative’s office said.

That meeting will be followed by a meeting of U.S. Trade Representative Robert Lighthizer and U.S.Treasury Secretary Steven Mnuchin with China’s top negotiator, Vice Premier Liu He, in early October. The mood among German investors improved more than expected in September, a survey showed, but the ZEW institute warned that the outlook for Europe’s largest economy remained negative amid trade disputes and Brexit uncertainty.

Trading Ideas:
–Gold trading range for the day is 37618-38080.
–Gold dropped as investors awaited news on the U.S. central bank’s stance on monetary policy, while some easing of the oil market’s woes dented demand for safe-haven bullion.
–Denting safe-haven appeal for gold, Saudi Arabia sought to reassure markets after the attack halved its crude oil output, saying full production would be restored.
–The Fed released a report showing industrial production rebounded by much more than anticipated in the month of August.

Courtesy: Kedia Commodities

Source: Commodityonline.com