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Thursday, February 22, 2024

MCX Gold under short covering; Support seen at 47944

Technically Gold market is under short covering as market has witnessed drop in open interest by 1.21% to settled at 8414 while prices up 15 rupees.

Now MCX Gold is getting support at 47944 and below same could see a test of 47802 levels, and resistance is now likely to be seen at 48234, a move above could see prices testing 48382.

Gold yesterday settled up by 0.03% at 48087 as investors await the U.S. Federal Reserve’s decision on the pace at which the central bank plans to taper its pandemic stimulus measures.

The Fed is expected to announce that it is speeding up the end of its pandemic-era bond purchases and signal a turn to interest rate increases next year as a guard against surging inflation.

U.S. retail sales increased less than expected in November, likely payback after surging in the prior month as Americans started their holiday shopping early to avoid empty shelves.

A rotation in spending from goods back to services as well as shortages and the resulting higher prices also appear to have held back retail sales last month, with the report from the Commerce Department on Wednesday showing a sharp drop in receipts at electronics and appliance stores.

India continued to heavily rely on imports to meet its domestic requirements for gold with imports making up 86% of its total supply during 2016-2020, the World Gold Council said.

Since the implementation of mandatory hallmarking for gold ornaments, around 42.9 mln pieces of jewellery have been hallmarked during Jul-Nov, Ashwini Kumar Choubey, minister of consumer affairs, food and public distribution said in the Lok Sabha.

Trading Ideas:
–Gold trading range for the day is 47802-48382.
–Gold prices stabilised as investors await Fed’s decision on the pace at which the central bank plans to taper its pandemic stimulus measures.
–U.S. retail sales increased less than expected in November, likely payback after surging in the prior month.
–India’s Gold imports at $4.2 billion were 40% higher than a year ago, but 17% lower than last month.

Courtesy: Kedia Commodities

Source: Comodity Online

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