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Saturday, January 29, 2022

MCX Gold under fresh selling; Support seen at 47223

Technically Gold market is under fresh selling as market has witnessed gain in open interest by 8.25% to settled at 10581 while prices down 471 rupees.

Now MCX Gold is getting support at 47223 and below same could see a test of 47045 levels, and resistance is now likely to be seen at 47706, a move above could see prices testing 48011.

Gold yesterday settled down by 0.98% at 47401 as U.S. Federal Reserve Chairman Jerome Powell’s latest comments bolstered expectations for faster monetary policy tightening and overshadowed Omicron-led safe-haven inflows into bullion.

Fed chair Jerome Powell doubled down on his hawkish tilt, stating in congress that policymakers will discuss an earlier end to the central bank’s stimulus in the next meeting.

He also emphasized the need to be ready to respond to the possibility that inflation may not recede in the second half of next year as most forecasters currently expect.

His comments buoyed the dollar, further pressuring the bullion, as a stronger dollar makes the yellow metal more expensive for buyers with other currencies. Investors now await the U.S. jobs report for November due on Friday that could influence the Fed’s rate stance.

Data showed private payrolls increased by 534,000 jobs last month. The number of Americans filing new claims for unemployment benefits increased less than expected last week, pointing to tightening labor market conditions, while layoffs tumbled to a 28-1/2-year low in November.

Initial claims for state unemployment benefits rose 28,000 to a seasonally adjusted 222,000 for the week ended Nov. 27, the Labor Department said. Claims, which dropped to 194,000 in the prior week, tend to be volatile around Thanksgiving, the start of the holiday season.

Trading Ideas:
–Gold trading range for the day is 47045-48011.
–Gold prices fell as Fed’s Powell latest comments bolstered expectations for faster monetary policy tightening and overshadowed Omicron-led safe-haven inflows into bullion.
–Fed chair Powell doubled down on his hawkish tilt, stating in congress that policymakers will discuss an earlier end to the central bank’s stimulus in the next meeting.
–Data showed private payrolls increased by 534,000 jobs last month.

Courtesy: Kedia Commodities

Source: Comodity Online

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