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Saturday, January 22, 2022

MCX Gold under short covering; Support seen at 47844

Technically Gold market is under short covering as market has witnessed drop in open interest by 4.11% to settled at 8796 while prices up 146 rupees.

Now MCX Gold is getting support at 47844 and below same could see a test of 47628 levels, and resistance is now likely to be seen at 48222, a move above could see prices testing 48384.

Gold yesterday settled up by 0.3% at 48060 as the focus turned to U.S. consumer prices data later this week that may influence the Federal Reserve’s interest-rate hike timeline, with investors seeming to shrug off concerns over the Omicron variant.

Friday’s U.S. Consumer Price Index report could be crucial in gauging the Fed’s monetary policy, especially in the run up to the Federal Open Market Committee’s (FOMC) next meeting on Dec. 14 and 15.

The U.S. trade deficit narrowed sharply in October as exports soared, potentially setting up trade to contribute to economic growth this quarter. The Commerce Department said that the trade gap plunged 17.6% to $67.1 billion.

The World Gold Council in its latest quarterly report estimated that gold jewellery demand from Indian consumers climbed 60% in the July-September quarter, both on a year-on-year and quarter-on-quarter basis, to 96 tonnes due to strong pent up demand, a rebound in economic activity and lower prices.

The demand for coins and bars for investment was estimated to have climbed 27% to 43 tonnes in the second quarter. Sales of gold coins and minted bars soared to 115,872 ounces last month, the highest level since March this year, from 59,750 ounces in October, and were up nearly 38% from a year earlier.

Trading Ideas:
–Gold trading range for the day is 47628-48384.
–Gold gaind as the focus turned to U.S. consumer prices data later this week that may influence Fed’s interest-rate hike timeline.
–Gold’s slight uptick came despite gains in global equities that jumped as Omicron worries waned.
–The value of China’s gold reserves rose to $113.03 billion at the end of November from $110.83 billion at end-Oct.

Courtesy: Kedia Commodities

Source: Comodity Online

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