MCX Cardamom under fresh buying; Resistance seen at 1378.6
MCX Cotton under fresh selling; Support seen at 22600
Crude Oil market under long liquidation; Support seen at 4962
Silver market under fresh selling; Support seen at 36455
Long liquidation seen in NCDEX Turmeric
Technically Gold market is under long liquidation as market has witnessed drop in open interest by 2.1% to settled at 7990.
Now MCX Gold is getting support at 30110 and below same could see a test of 30043 levels and resistance is now likely to be seen at 30271, a move above could see prices testing 30365.
Gold on MCX settled down -0.49% at 30178 as concerns over an escalating trade conflict between the United States and China battered emerging market currencies and prompted investors to seek perceived safety in the dollar.
The dollar index rallied as the public comment period on a U.S. proposal for new tariffs on Chinese goods is set to end on Thursday, after which Washington can follow through on plans to impose tariffs on $200 billion more of Chinese imports.
Emerging market currencies such as the Argentine peso, Turkish lira, South African rand, Brazilian real, Indonesian rupiah and Indian rupee sank as investors fear these export-oriented economies will be caught in the escalating trade war.
Gold has lost about 8 percent this year amid rising U.S. interest rates, trade disputes and the Turkish currency crisis, with investors parking their money in the dollar. U.S. manufacturing activity accelerated to more than a 14-year high, boosted by a surge in new orders, but increasing bottlenecks in the supply chain because of a robust economy and import tariffs could restrain further growth.
On a positioning basis, markets are firmly in the stronger dollar camp, with net outstanding positions holding just off the highest levels since January 2017, calculations by Commodity Futures Trading Commission data show. Data this week might lend further fuel to the dollar rally as U.S. investors return after a long weekend. U.S. August manufacturing ISM data is due later in the day and monthly payrolls data is due on Friday.
Trading Ideas:
–Gold trading range for the day is 30043-30365.
–Gold slipped as concerns over an escalating trade conflict between US and China battered emerging market currencies and prompted investors to buy dollar.
–Prices remained under pressure amid rising U.S. interest rates, trade disputes and the Turkish currency crisis, with investors parking their money in the dollar.
–Physical gold demand in India was moderate last week amid an improvement in retail purchases before the festival season despite an increase in domestic prices.
Courtesy: Kedia Commodities
Source: Commodityonline.com
