Technically Gold market is under fresh selling as market has witnessed gain in open interest by 0.78% to settled at 13364 while prices down 15 rupees.
Now MCX Gold is getting support at 46300 and below same could see a test of 46093 levels, and resistance is now likely to be seen at 46696, a move above could see prices testing 46885.
Gold yesterday settled down by 0.03% at 46506 pared gains seen due to weaker dollar and worries about rising inflation and risks to growth countered bets for looming interest rate hikes.
Helping gold’s appeal, European and Asian stocks fell on worries about inflation and possible slowdown in growth. Prospects that the U.S. Fed may still wind down economic support this year also continued to pressure gold, since reduced stimulus and higher interest rates tend to push government bond yields up, raising gold’s opportunity cost.
U.S. consumer spending increased more than expected in August, but consumption was weaker than initially thought in the prior month, keeping intact expectations that economic growth slowed in the third quarter amid a resurgence in COVID-19 infections.
Demand for physical gold picked up in top consumer China on a dip in domestic rates, while there was also increased activity in other Asian hubs including Singapore. In India, demand was moderate as prices remained volatile, but dealers hoped sales would improve next week due to the Dussehra festival.
Premiums rose to $4 an ounce over official prices, inclusive of 10.75% import and 3% sales levies, from $3 last week. In China, dealers charged premiums of about $12 an ounce over global benchmark prices, from $7-$12 last week.
–Gold trading range for the day is 46093-46885.
–Gold settled flat paring gains seen amid a weaker dollar and worries about rising inflation and risks to growth.
–Helping gold’s appeal, European and Asian stocks fell on worries about inflation and possible slowdown in growth.
–Uncertainties including the fallout of the China Evergrande crisis have also spurred safe-haven buying.
Courtesy: Kedia Commodities
Source: Comodity Online