Zinc market under fresh selling; Support seen at 174.6
MCX Copper may trade in a range between 416.8-428.4
MCX Copper may trade in a range between 416.8-428.4
Natural Gas market under fresh selling; Support seen at 190.5
Crude Oil market under long liquidation; Support seen at 4714
Technically MCX market is under fresh selling as market has witnessed gain in open interest by 0.97% to settled at 6954 while prices down -163 rupees.
Now MCX Gold is getting support at 30092 and below same could see a test of 30038 levels and resistance is now likely to be seen at 30245, a move above could see prices testing 30344.
Gold on MCX settled down 0.54% at 30147 despite Comex Gold prices ended higher Thursday tacked on $2.20 to settle at $1,246.60 an ounce finding some support a day after a fresh round of global trade-war worries buoyed the dollar and sent the yellow metal to a more than one-week low.
In recent weeks, the dollar has been the most significant influence for bullion. The ICE US Dollar Index climbed by less than 0.1% Wednesday, though it was on pace for a weekly rise of around 0.8%. A stronger dollar can make assets linked to the currency relatively more expensive to buyers using other monetary units.
Last night the US dollar index continued to gain on steadily-rising US inflation data and trade war saga. It closed at 94.8, with a slower growth rate from Wednesday. The US CPI in June rose 0.1% from May, lower from the expected and May’s 0.2% increase.
However, the underlying trend continued to indicate a steady build-up of inflation pressures that could keep the Federal Reserve Board on a path of gradual interest rate increases. While a tightening labour market and rising raw material costs are likely to push up inflation through next year.
The US initial claims for unemployment benefits dropped more than expected, by 18,000 to a seasonally adjusted 214,000 for the week ended July 7, the lowest level since early May. This indicated that labour market conditions remained robust in early July.
Trading Ideas:
–Gold trading range for the day is 30038-30344.
–Gold dropped as the dollar firmed after an expectation-beating inflation report reaffirmed expectations that Fed would hike interest rates two more times this year.
–The Labor Department said its producer price index for final demand increased 0.3% last month, compared to the expected 0.2%.
–Trade concerns also?remained in focus as the latest development pushed?the?Chinese?equity?markets into their worst selloff since three years ago.
Courtesy: Kedia Commodities
Source: Commodityonline.com
