Technically Gold market is under long liquidation as market has witnessed drop in open interest by 2.04% to settled at 8662 while prices down 281 rupees.
Now MCX Gold is getting support at 47515 and below same could see a test of 47409 levels, and resistance is now likely to be seen at 47806, a move above could see prices testing 47991.
Gold yesterday settled down by 0.59% at 47622 ahead of a crucial U.S. Federal Reserve meeting that could offer cues on future interest rate hikes amid rising inflationary pressures.
The Fed is expected to approve plans to scale back its bond-buying programme on Wednesday, when it concludes a two-day policy meeting. Markets will also be watching the Bank of England policy meeting on Thursday as investors weigh chances of the first interest rate hike by a major central bank since the pandemic.
U.S. Treasury Secretary Janet Yellen said the United States expected China to meet its commitments under the Phase 1 trade deal signed under former President Donald Trump, but could look at eventually lowering some tariffs in a reciprocal way.
Yellen told in an interview that tariffs tend to boost domestic prices and raise costs to consumers and to firms from inputs such as aluminum and steel, which meant lowering tariffs would have a “disinflationary” effect.
The Treasury secretary and other officials insist that the current spike in prices in the United States is a result of supply chain bottlenecks and higher energy prices, but say inflation should ease in the second half of 2022.
China’s gold consumption in the first nine months of 2021 rose 48.4% on the year to 813.59 tonnes, the China Gold Association said, as demand recovered from a pandemic-affected 2020.
–Gold trading range for the day is 47409-47991.
–Gold prices dropped ahead of a crucial Fed meeting that could offer cues on future interest rate hikes amid rising inflationary pressures.
–The Fed is expected to approve plans to scale back its bond-buying programme on Wednesday, when it concludes a two-day policy meeting.
–Markets will also be watching the BOE policy meeting on Thursday as investors weigh chances of the first interest rate hike.
Courtesy: Kedia Commodities
Source: Comodity Online