Short covering seen in MCX Zinc
MCX Aluminium under fresh buying; Support seen at 143.3
MCX Mentha Oil under short covering
NCDEX Castor under fresh buying; Support seen at 4371
MCX Cardamom under fresh buying; Resistance seen at 1060.7
Technically MCX Gold is getting support at 30491 and below same could see a test of 30423 level, And resistance is now likely to be seen at 30682, a move above could see prices testing 30805.
Gold prices traded in the range as the U.S. dollar weakened and U.S. trade tariffs against China went into effect. Trade conflict between the two biggest economies in the world began in force on Friday, when U.S. tariffs on $34 billion worth of Chinese goods went into effect, with more tariffs expected in the coming weeks.
China has also retaliated with tariffs on $34 billion of American goods, according to Xinhua news. Beijing had previously said it would impose tariffs on U.S. agricultural products, crude imports, and vehicle products. The precious metal was also held back by a mixed jobs report. The U.S. added more jobs than expected in June, indicating a strengthening economy.
However, wage inflation rose less than expected, which could lower expectations for an interest rate increase. The increase in wages is being closely monitored by the Federal Reserve for evidence of diminishing slack in the labor market and upward pressure on inflation.
Gold was sold at a premium in India in the week after a drop in domestic prices boosted demand, while buyers elsewhere in Asia were sidelined, waiting how the escalating trade tensions between the United States and China would evolve.
Indian dealers were charging a premium of up to $1.50 an ounce over official domestic prices this week, compared to a discount of $2 last week. Gold supplies are limited due to lower imports in the last few weeks. In top consumer China, premiums in the week were nearly unchanged from the previous week at $2-$5 an ounce against the international benchmark.
Trading Ideas:
–Gold trading range for the day is 30423-30805.
–Gold prices traded in the range as the U.S. dollar weakened and U.S. trade tariffs against China went into effect.
–FOMC minutes reinforce view of steady rate hikes. Says trade risks are growing
–Trade conflict between the two biggest economies in the world began in force on Friday, when U.S. tariffs on $34 billion worth of Chinese goods went into effect.
Courtesy: Kedia Commodities
Source: Commodityonline.com
