MCX Gold under fresh buying; Support seen at 46497

Technically Gold market is under fresh buying as market has witnessed gain in open interest by 1.27% to settled at 13534 while prices up 381 rupees.

Now MCX Gold is getting support at 46497 and below same could see a test of 46108 levels, and resistance is now likely to be seen at 47119, a move above could see prices testing 47352.

Gold yesterday settled up by 0.82% at 46887 as a weaker dollar offset bets that the U.S. Federal Reserve could begin tapering its pandemic-era asset purchases soon.

The U.S. Federal Reserve may be close to meeting the inflation mandate set for raising interest rates, Philadelphia Fed Bank President Patrick Harker said, but it may be a year or longer before the central bank’s employment goal is met to allow for an actual rate increase.

The Fed’s conditions for raising interest rates could be met by the end-2022, Cleveland Fed Bank President Loretta Mester said, adding, she expects inflation to come back down to the central bank’s target next year.

Demand for physical gold also picked up in top consumer China last week and there was increased activity in other Asian hubs including Singapore. Speculators cut net long positions by 19,471 contracts to 42,123 in the week to Sept. 28, data from the U.S. Commodity Futures Trading Commission (CFTC) showed.

India’s gold imports in September soared 658% from last year’s lower base as a correction in local prices to the lowest level in nearly six months prompted jewellers to step up purchases for the upcoming festive season. India imported 91 tonnes of gold in September, compared to 12 tonnes a year earlier.

Trading Ideas:
–Gold trading range for the day is 46108-47352.
–Gold prices rose as a weaker dollar offset bets that the U.S. Federal Reserve could begin tapering its pandemic-era asset purchases soon.
–Fed may be close to meeting the inflation mandate set for raising interest rates, Philadelphia Fed Bank President Patrick Harker said.
–India’s Sept gold imports surge nearly 8 times as prices drop.

Courtesy: Kedia Commodities

Source: Comodity Online