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Friday, July 1, 2022

MCX Gold under long liquidation; Support seen at 47504

Technically Gold market is under long liquidation as market has witnessed drop in open interest by 6.22% to settled at 10627 while prices down 387 rupees.

Now MCX Gold is getting support at 47504 and below same could see a test of 47196 levels, and resistance is now likely to be seen at 48200, a move above could see prices testing 48588.

Gold yesterday settled down by 0.8% at 47813 after the dollar steadied and risk-on sentiment in markets, powered by strong earnings on Wall Street, dented demand for the safe-haven metal.

U.S. consumer confidence unexpectedly rose in October as concerns about high inflation were offset by improving labor market prospects, suggesting economic growth picked up early in the fourth quarter.

The Conference Board said its consumer confidence index increased to a reading of 113.8 this month from 109.8. U.S. Treasury Secretary Janet Yellen “frankly raised issues of concern” in a virtual meeting with Chinese Vice Premier Liu He, the U.S. Treasury said in a statement.

The Treasury statement did not elaborate on the concerns. It said the two officials “discussed macroeconomic and financial developments in the United States and China, recognizing that developments in our two economies have important implications for the global economy.”

China’s net gold imports via Hong Kong jumped 59.5% in September from the previous month, Hong Kong Census and Statistics Department data showed.

Net imports stood at 34.786 tonnes in September compared with 21.804 tonnes in August, the data showed. The Bank of Japan and the European Central Bank are set to hold monetary policy meetings on Thursday, while the U.S. Federal Reserve’s policy meeting is due next week.

Trading Ideas:
–Gold trading range for the day is 47196-48588.
–Gold prices fell after the dollar steadied and risk-on sentiment in markets, dented demand for the safe-haven metal.
–U.S. Treasury’s Yellen raised ‘issues of concern’ with Chinese Vice Premier Liu.
–China’s net gold imports via Hong Kong rise 59.5% in September.

Courtesy: Kedia Commodities

Source: Comodity Online

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