Zinc market under long liquidation; Support seen at 178.4
MCX Copper may trade in a range between 424.1-435.5
Natural Gas market under short covering; Resistance seen at 191.3
MCX Crude Oil may trade between 4662-4856 levels
MCX Silver may trade between 38198-38864 levels
Technically Gold market is under short covering as market has witnessed drop in open interest by -10.55% to settled at 4892 while prices up 52 rupees.
Now MCX Gold is getting support at 29808 and below same could see a test of 29701 levels and resistance is now likely to be seen at 30005, a move above could see prices testing 30095.
Gold prices traded in range lack of clarity over where a brewing trade spat between the United States and Europe. U.S. President Donald Trump and European Commission President Jean-Claude Juncker agreed to work towards eliminating trade barriers.
The European Central Bank is all but certain to keep policy on hold, arguing that the risks from an amplifying global trade conflict don’t warrant a deviation from its plan to gently exit its easy-money policy of the last few years.
The Bank of Japan will consider at next week’s rate review changing the composition of exchange-traded funds (ETF) it buys as part of is massive stimulus programme, the Nikkei newspaper reported.
Rising investor interest in gold can be seen in the holdings of the largest gold-backed, exchange-traded fund, New York’s SPDR Gold Trust, which are up more than 1 percent to 25.803 million ounces since July 18.
SPDR holdings have been trending down since April 30, partly due to higher U.S. interest rates, raising the cost of holding gold, which earns no income, interest or dividends and costs money to store and insure.
China’s gold output dropped by 7.9 percent in the first half of this year to 190.28 tonnes due to an environmental crackdown on illegal mining, Xinhua News Agency reported on Wednesday, citing figures from the China Gold Association. The U.S. central bank raised interest rates in June for the seventh time since December 2015.
Trading Ideas:
–Gold trading range for the day is 29701-30095.
–Gold prices traded in range lack of clarity over where a brewing trade spat between the United States and Europe.
–Rising investor interest in gold can be seen in the SPDR holdings which are up more than one percent to 25.803 million ounces since July 18.
–Investors are also awaiting the second-quarter U.S. economic growth data which is due on Friday, where they expect growth to top current forecasts of 4.1%.
Courtesy: Kedia Commodities
Source: Commodityonline.com
