Gold market under fresh selling; Support seen at 30039

MCX Zinc may trade in a range between 172.2-181.8

MCX Copper may trade in a range between 418.5-433.3

Natural Gas market under fresh buying; Support seen at 205.4

MCX Crude Oil may trade in a range between 4907-5035

Silver market under fresh selling; Support seen at 37282

Technically Gold market is under fresh selling as market has witnessed gain in open interest by 3.39% to settled at 8267.

MCX Gold is getting support at 30039 and below same could see a test of 29950 levels and resistance is now likely to be seen at 30288, a move above could see prices testing 30448.

Gold on MCX settled down 0.14% at 30129 as the dollar steadied and investors grew jittery about an escalation in the U.S.-China trade dispute after fresh threats by U.S. President Donald Trump.

Trump is prepared to ramp up a trade war with China and has told aides he is ready to impose tariffs on $200 billion more in Chinese imports as soon as a public comment period on the plan ends next week.

However, the prospect of higher U.S. interest rates next month and again before the end of the year is a negative. The U.S. Federal Reserve next meets on Sept. 25-26 and twice more in November and December. The holdings of SPDR Gold Trust, the world’s largest gold-backed ETF at 24.36 million ounces, are down 13 percent since late April.

Physical gold demand in India was moderate in the week amid an improvement in retail purchases before the festival season despite an increase in domestic prices, while top consumer China saw a slight uptick in activity.

India’s top bullion consuming southern state of Kerala was hit by the worst flooding in a century this month, which killed hundreds and caused widespread damage.

Demand in the country is expected to pick up further in the festival season beginning in September, when buying gold is considered auspicious. Dealers in India were charging a premium of up to $1 an ounce over official domestic prices in the week, compared to a premium of $1.25 the last week.

Trading Ideas:
–Gold trading range for the day is 29950-30448.
–Gold dropped as the dollar steadied and investors grew jittery about an escalation in the U.S.-China trade dispute after fresh threats by U.S. President Donald Trump.
–US President Trump is prepared to ramp up a trade war with China and has told aides he is ready to impose tariffs on $200 billion more in Chinese imports.
–Physical gold demand in India was moderate in the week amid an improvement in retail purchases before the festival season despite an increase in domestic prices.

Courtesy: Kedia Commodities

Source: Commodityonline.com