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Wednesday, August 17, 2022

MCX Gold may trade in range between 30460-30866 levels

Crude Oil market under fresh buying; Support seen at 4938

Silver market under fresh selling; Support seen at 37100

MCX Crude Palm Oil under Fresh selling; Support seen at 604.4

NCDEX Ref Soy Oil may trade between 744-750 levels

NCDEX Soyabean under fresh buying; Resistance seen at 3283

Technically Gold is getting support at 30588 and below same could see a test of 30460 levels and resistance is now likely to be seen at 30791, a move above could see prices testing 30866.

Gold prices held steady as investors remained on the sidelines amid expectations of a U.S. interest rate hike this month. Since its April peak gold has dropped more than 12 percent as a trade war between China and the U.S. has driven investors to seek safety in the dollar rather than in gold, a traditional safe haven.

Bearish bets on Comex gold have risen to record levels while investors have liquidated exchange-traded gold fund holdings. The dollar was little changed versus a currency basket, with the euro underpinned by easing concerns over Italian debt and the British pound near five-week highs on hopes of a Brexit deal with the European Union.

Broadly underpinning the dollar were Friday’s comments from U.S. President Donald Trump that he was ready to impose tariffs on virtually all Chinese imports to the United States. Furthermore, U.S. payrolls data last week cemented expectations that the Federal Reserve will raise U.S. interest rates in September.

The trade conflict has prompted investors to buy the U.S. dollar in the belief that the United States has less to lose from the dispute, making dollar-priced gold more expensive for non-U.S. buyers.

Traders were bracing for a potential escalation in the Sino-U.S. row after President Donald Trump said last week that he was ready to impose tariffs on virtually all Chinese imports to the United States.

China told the World Trade Organization on Tuesday it wanted to impose $7 billion a year in sanctions on the United States in retaliation for Washington’s non-compliance with a ruling in a dispute over U.S. dumping duties.

Trading Ideas:
–Gold trading range for the day is 30460-30866.
–Gold prices held steady as investors remained on the sidelines amid expectations of a U.S. interest rate hike this month.
–Strong U.S. payrolls data cemented expectations that the U.S. Federal Reserve will raise interest rates in September, in what would be its third hike this year.
–Traders were bracing for a potential escalation in the Sino-U.S. row after President Donald Trump raised the stakes by saying he was ready to impose tariffs.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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