Technically Gold market is under fresh selling as market has witnessed gain in open interest by 0.55% to settled at 10040 while prices down 185 rupees.
Now MCX Gold is getting support at 47478 and below same could see a test of 47152 levels, and resistance is now likely to be seen at 48315, a move above could see prices testing 48826.
Gold yesterday settled down by 0.39% at 47805 as the dollar pared some losses after Federal Reserve Chairman Jerome Powell indicated the central bank could hasten a tightening of monetary policy.
Powell told the Senate Committee that he thinks reducing the pace of monthly bond buys can move more quickly than the $15 billion a month schedule announced earlier this month.
Earlier, investors sought safe havens again after Moderna’s CEO warned COVID-19 vaccines were likely to be less effective against the Omicron variant, putting bullion on course for a second straight monthly gain.
Fed Chairman Jerome warned that the new COVID-19 strain muddied the central bank’s inflation outlook and prices could continue to rise for longer than thought. Market fear and uncertainty surrounding the Omicron, which WHO labeled as a “variant of concern” sparked a global selloff in risk assets and a flight to safety.
However, easing concerns drove investors to reverse Friday’s knee-jerk reaction with equities, commodities, the dollar and treasury yields recouping some losses, further pressuring the bullion.
Each successive variant of COVID-19 has had a weaker effect on the economy, and if the new Omicron variant discovered in South Africa follows that pattern, it should cause less of a slowdown than what was seen after the Delta variant, Atlanta Federal Reserve Bank President Raphael Bostic said.
Trading Ideas:
–Gold trading range for the day is 47152-48826.
–Gold settled lower after Fed Chairman Powell indicated the central bank could hasten a tightening of monetary policy.
–Earlier, investors sought safe havens again after Moderna’s CEO warned COVID-19 vaccines were likely to be less effective against the Omicron variant.
–President Joe Biden said that the US was in a good position to control Omicron’s potential spread without having to resort to lockdowns or more travel bans for now.
Courtesy: Kedia Commodities
Source: Comodity Online
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