MCX Copper likely to trade between 414-429.6 levels
MCX Natural Gas may trade in a range between 198.3-203.5
MCX Crude Oil may trade in a range between 4753-4895
Silver market under long liquidation; Support seen at 36965
MCX Cotton under short covering
Technically Gold market is under short covering as market has witnessed drop in open interest by -3.34% to settled at 7789 while prices up 22 rupees.
Now MCX Gold is getting support at 29946 and below same could see a test of 29869 levels and resistance is now likely to be seen at 30155, a move above could see prices testing 30287.
Gold pared gains as U.S. Treasuries rose after the United States and Mexico struck a trade deal, with ongoing U.S.-China tensions would continue to weigh.
U.S. Treasury yields rose across maturities to weekly highs as global trade war fears abated a day after the United States and Mexico reached agreement on an overhaul of the North American Free Trade Agreement (NAFTA).
The easing of trade tensions prompted investors to reduce safe-haven positions in U.S. government debt. Sales of long-term Treasuries in particular pressured prices and drove yields up more at the long end of the curve, indicating bullishness about the economic outlook.
U.S. and Chinese officials ended two days of talks last week with no major breakthrough as their trade war escalated with activation of another round of duelling tariffs.
The dollar, which had risen recently on safe-haven buying from investors nervous about the trade dispute and U.S. interest rate hikes, slipped to four-week lows on Tuesday after a trade deal between U.S. and Mexico. In recent months, investors have sought safety from global trade conflict in U.S. Treasuries, which entails buying dollars.
In Washington, Canada’s main trade negotiator was in talks to preserve a three-nation North American Free Trade Agreement following Monday’s deal between the United States and Mexico. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.62 percent to 759.87 tonnes on Tuesday from Monday.
Trading Ideas:
–Gold trading range for the day is 29869-30287.
–Gold pared gains as U.S. Treasuries rose after the United States and Mexico struck a trade deal, with ongoing U.S.-China tensions would continue to weigh.
–Markets believe recent higher activity in gold options amid geopolitical tensions and a record-long bull market for U.S. equities suggest that investors are betting gold prices.
–China’s net gold imports via main conduit Hong Kong dived 45 percent in July from the previous month, data showed.
Courtesy: Kedia Commodities
Source: Commodityonline.com
