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Monday, October 18, 2021

MCX Gold under fresh buying; Support seen at 46616

Technically Gold market is under fresh buying as market has witnessed gain in open interest by 2.06% to settled at 13472 while prices up 150 rupees.

Now MCX Gold is getting support at 46616 and below same could see a test of 46325 levels, and resistance is now likely to be seen at 47094, a move above could see prices testing 47281.

Gold yesterday settled up by 0.32% at 46907 after the International Monetary Fund said that headline consumer price inflation should peak this fall and recede to pre-pandemic levels by mid-2022, but risks remain that shortage-driven inflation spikes could prove more persistent, unanchoring expectations.

Friday’s U.S. payrolls data is forecast to show 488,000 jobs were added in September, and would be crucial to the Federal Reserve’s timeline for tapering economic support.

Chicago Fed President Charles Evans said he continues to believe supply bottlenecks are driving most of the recent increase in inflation and will subside. He also repeated that the central bank is close to begin reducing its monthly asset purchases.

Gold is often viewed as an inflation hedge, but reduced central bank stimulus and interest rate hikes tend to push government bond yields up, translating into a higher opportunity cost for holding gold that pays no interest.

US services industry activity nudged up in September, but growth is being restrained by a persistent shortage of inputs and the resulting high prices, an Institute for Supply Management survey showed.The Perth Mint’s sales of gold products in September jumped about 83% to their highest level since April, while silver sales rose nearly 23%, tracking a dip in prices.

Trading Ideas:
–Gold trading range for the day is 46325-47281.
–Gold recovered after the International Monetary Fund said that headline consumer price inflation should peak this fall.
–Fed’s Evans said he continues to believe supply bottlenecks are driving most of the recent increase in inflation and will subside.
–U.S. payrolls data is forecast to show 488,000 jobs were added in September, and would be crucial to Fed’s timeline for tapering economic support.

Courtesy: Kedia Commodities

Source: Comodity Online

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