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Wednesday, July 6, 2022

MCX Gold may trade between 29499-29983 levels

Natural gas market under fresh selling; Support seen at 188.5

MCX Zinc under fresh selling; Resistance seen at 173.5

Crude Oil market under long liquidation; Support seen at 4590

MCX Nickel under fresh selling; Support seen at 898.8

Silver market under fresh selling; Support seen at 37820

Technically now Gold is getting support at 29588 and below same could see a test of 29499 levels and resistance is now likely to be seen at 29830, a move above could see prices testing 29983.

Gold on MCX settled down 0.67% at 29678 on a stronger dollar as the market waited for the result of a Federal Reserve meeting later in the day, expected to provide more signals on the direction of U.S. monetary policy.

The U.S. Federal Reserve kept interest rates unchanged as expected but characterized the economy as strong, keeping the central bank on track to increase borrowing costs in September.

U.S. short-term interest rates futures were little changed as traders stuck to the view that the Federal Reserve would raise key borrowing costs two more times in 2018 with the next rate hike seen happening at its Sept. 25-26 policy meeting. 

The U.S. dollar after a source familiar with the Trump administration’s plans said the White House was about to propose higher tariffs on $200 billion in Chinese imports. Meanwhile, trade tensions also pushed world stocks lower as investors feared a trade war between Washington and Beijing could hit global growth.

The Bank of England looks set to raise interest rates on Thursday to their highest level since the financial crisis almost a decade ago, defying warnings that it is taking a gamble ahead of Brexit, the terms of which remain unclear.

Hedge funds and money managers increased their net short position in COMEX gold contracts to a record in the week to July 24, U.S. Commodity Futures Trading Commission data showed. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.40 percent to 796.96 tonnes on Wednesday from 800.20 tonnes on Tuesday.

Trading Ideas:
–Gold trading range for the day is 29499-29983.
–Gold prices were down as traders wait for a policy decision from the Federal Reserve.
–Fed kept interest rates unchanged as expected but characterized the economy as strong, keeping the central bank on track to increase borrowing costs in September.
–Trade tensions resurfaced on Wednesday, after news reports said the White House plans to propose tariffs of 25% instead of 10% on $200 billions of imported Chinese goods.

Courtesy: Kedia Commodities 

Source: Commodityonline.com

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