Technically Gold market is under long liquidation as market has witnessed drop in open interest by 3.14% to settled at 6869 while prices down 16 rupees.
Now MCX Gold is getting support at 49101 and below same could see a test of 48905 levels, and resistance is now likely to be seen at 49484, a move above could see prices testing 49671.
Gold yesterday settled down by 0.03% at 49298 as markets awaited fresh clues on the US economy and the likely direction of monetary policy.
Limiting losses in gold, the dollar eased from an almost 16-month high as traders awaited fresh clues on Federal Reserve’s interest rate hike plans on the back of red-hot inflation.U.S. benchmark 10-year Treasury yields also pulled back, reducing non-yielding bullion’s opportunity cost.
Minneapolis Federal Reserve Bank President Neel Kashkari said he expects higher inflation continuing over the next few months but warned that the U.S. central bank should not overreact to elevated inflation as it is likely to be temporary.
“The math suggests we’re probably going to see somewhat higher readings over the next few months before they likely start to taper off,” Kashkari told CBS News’ “Face the Nation” in an interview.
“But my view is we also need to not overreact to some of these temporary factors, even though the pain is real,” Kashkari said in the interview.Kashkari said he expects more clarity on the economic outlook by the time the Fed ends its bond-buying program in mid-2022, and is keeping an “open mind” on the timing of any rate hikes to follow.
–Gold trading range for the day is 48905-49671.
–Gold prices traded in a narrow range as markets awaited fresh clues on the US economy and the likely direction of monetary policy.
–Limiting losses in gold, the dollar eased from an almost 16-month high as traders awaited fresh clues on Federal Reserve’s interest rate hike plans.
–U.S. benchmark 10-year Treasury yields also pulled back.
Courtesy: Kedia Commodities
Source: Comodity Online