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Monday, January 24, 2022

MCX Gold under long liquidation; Support seen at 48828

Technically Gold market is under long liquidation as market has witnessed drop in open interest by 6.83% to settled at 6400 while prices down 260 rupees.

Now MCX Gold is getting support at 48828 and below same could see a test of 48619 levels, and resistance is now likely to be seen at 49428, a move above could see prices testing 49819.

Gold yesterday settled down by 0.53% at 49038 as U.S. retail sales increased more than expected in October, likely as Americans started their holiday shopping early to avoid empty shelves amid shortages of some goods because of the ongoing pandemic, giving the economy a lift at the start of the fourth quarter.

Retail sales surged 1.7% last month, the Commerce Department said. Data for September was revised higher to show retail sales increasing 0.8% instead of 0.7% as previously reported.

Sales have now risen for three straight months.Richmond Federal Reserve President Thomas Barkin said that while the Fed will not hesitate to raise interest rates, the central bank should wait to gauge if inflation and labor shortages prove to be more long-lasting.

U.S. import prices surged in October as the costs of petroleum products and food increased, adding to signs that inflation could remain high for a while. Import prices accelerated 1.2% last month after gaining 0.4% in September, the Labor Department said.

The government reported last week a broad-based surge in both consumer and producer prices in October. Inflation is being fueled by fiscal stimulus and strained global supply chains related to the nearly two-year long COVID-19 pandemic.

Trading Ideas:
–Gold trading range for the day is 48619-49819.
–Gold dropped gains as U.S. retail sales increased more than expected in October.
–Retail sales surged 1.7% last month, the Commerce Department said.
–Fed’s Barkin said that while the Fed will not hesitate to raise interest rates.

Courtesy: Kedia commodities

Source: Comodity Online

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