10.9 C
New York
Thursday, October 28, 2021

Gold market under short covering; Support seen at 29713

Copper market under fresh selling; Support seen at 408.8

Natural Gas likely to trade between 185-194.8 levels

MCX Crude Oil may trade in a range between a 4538-4844

Silver market under fresh selling; Support seen at 37978

MCX Cotton under long liquidation

Technically Gold market is under short covering as market has witnessed drop in open interest by 6.05% to settled at 6261 while prices up 119 rupees.

Now MCX Gold is getting support at 29713 and below same could see a test of 29542 levels and resistance is now likely to be seen at 30000, a move above could see prices testing 30116.

Gold recovered on short covering after prices seen under pressure as the dollar rose after comments from Fed Chairman that reaffirmed expectations more U.S. interest rate increases are on the way this year. The Fed raised rates in June and policymakers have indicated they expect two more increases this year.

Powell said nothing in two days of congressional testimony this week to suggest otherwise. U.S. President Donald Trump told he is “not thrilled” about interest rate increases because they strengthened the dollar, making U.S. exports more expensive overseas.

White House economic advisor Larry Kudlow said trade talks with China?have paused for now, although discussions with the European Union have been more promising.

Global trade tensions have not driven investors to purchase gold, traders said. Bullion is generally regarded as a safe and stable store of value during times of global uncertainty. Demand for gold is expected to rise during the second half of 2018, as inflation potentially rises and a global trade war may impact currencies, the World Gold Council said.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.52 percent to 798.13 tonnes on Thursday.   European Union countries will suffer long-term damage equivalent to about 1.5 percent of annual economic output if Britain leaves the bloc without a free trade deal next year, the International Monetary Fund said.

Trading Ideas:
–Gold trading range for the day is 29542-30116.
–Gold recovered on short covering after prices seen under pressure as the dollar rose after comments from Fed Chairman that reaffirmed expectations more U.S. interest rate increases
–White House economic advisor Larry Kudlow said trade talks with China?have paused for now, although discussions with the European Union have been more promising.
–Demand for gold is expected to rise during the second half of 2018, as inflation potentially rises and a global trade war may impact currencies, the World Gold Council said.

Courtesy: Kedia Commodities

Source: Commodityonline.com

Related Articles

Stay Connected

10,837FansLike
12,893FollowersFollow
755FollowersFollow
- Advertisement -

Latest Articles

Popular Articles