25.2 C
New York
Monday, July 4, 2022

Gold market under long liquidation; Support seen at 32059

MCX Crude Oil likely to trade in a range between 3632-3894

Silver market under fresh buying; Support seen at 38913

NCDEX Chana under short covering; Resistance seen at 4322

MCX Cotton under long liquidation

NCDEX Jeera likely to move in a range of 16725-17235

Technically Gold market is under long liquidation as market has witnessed drop in open interest by 6.05% to settled at 8157 while prices down 20 rupees.

Now Gold is getting support at 32059 and below same could see a test of 31978 levels and resistance is now likely to be seen at 32219, a move above could see prices testing 32298.

Gold prices stood firm on higher demand for safe-haven assets over concerns of slowing global economy and uncertainties about the U.S.-China trade row.

Disappointing macro fundamentals data and a sudden surge in uncertainties surrounding the U.S.- China trade talks have made investors shun riskier assets, fuelling demand for safety. Disappointing economic data from the United States and Japan added to the sense of an overall slowdown.

U.S. home sales tumbled to their lowest in three years in December, data showed. Meanwhile, Japan export data released on Wednesday fell short of expectations. The United States rejected a Chinese offer for preparatory trade talks this week ahead of high-level negotiations scheduled for next week.

White House economic adviser Larry Kudlow denied the report. Also supporting gold was a prolonged partial U.S. government shutdown and expectations that the Federal Reserve will hold its multi-year rate hike cycle. Reflecting investors’ appetite for gold, holdings of the SPDR Gold exchange-traded fund (ETF), the largest gold-based ETF, was at its highest since June 2018.

Hedge funds and money managers raised their net long position in Comex gold in the week to Dec. 18, the U.S. Commodity Futures Trading Commission said. Speculators raised their net long position in gold by 14,317 contracts to 24,569 contracts, CFTC data showed, to its highest net long position in six months.      

Trading Ideas:
–Gold trading range for the day is 31978-32298.
–Gold prices held steady amid concerns over the slowing global economy along with uncertainty about the trade dispute between the United States and China.
–Disappointing economic data from US and Japan added to the sense of an overall slowdown. U.S. home sales tumbled to their lowest in three years in December.
–Fed’s Kudlow states that there has been ‘no cancellation’ of trade talks with China, contradicting earlier reports.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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