MCX Silver expected to trade in a range between 37817-38921
NCDEX Mustard Seed under fresh selling; Support Seen at 4191
MCX Crude Palm Oil under long liquidation
NCDEX Ref. Soya Oil under fresh selling; Resistance seen at 748
NCDEX Soyabean likely to move in a range of 3129-3287
Technically Gold market is under fresh buying as market has witnessed gain in open interest by 8.26% to settled at 12054.
Now MCX Gold is getting support at 30766 and below same could see a test of 30576 levels and resistance is now likely to be seen at 31063, a move above could see prices testing 31170.
Gold prices looks to trade with firmness buoyed by safe-haven demand as Italy’s budget plan sets it on course for a potential clash with the European Union. Risk appetite was hit after EU officials expressed concerns about Italy’s budget plan, which would widen the deficit significantly.
The deficit blowout revived fears of the eurozone debt crisis and put pressure on the euro. Italy’s government has no intention of leaving the euro, Claudio Borghi, the economics spokesman of the right-wing League, said, clarifying earlier remarks which had roiled financial markets.
China’s hopes of negotiating a free trade pact with Canada or Mexico were dealt a sharp setback by a provision deep in the new U.S.-Mexico-Canada trade agreement that aims to forbid such deals with “non-market” countries.
Federal Reserve Chairman Jerome Powell said that the U.S. central bank plans gradual increases to interest rates. This could further boost the U.S. currency, making dollar-priced gold more expensive for holders of other currencies, potentially subduing demand.
The Fed raised U.S. rates last week and said it planned four more increases by the end of 2019 and another in 2020, citing steady economic growth and a robust jobs market.
Investors have also opted to buy the dollar and U.S. Treasury bonds as safe investments instead of gold. Speculators raised their net short position in gold by 2,923 lots to 77,313 lots, the largest in three weeks, in the week to Sept. 25, U.S. Commodity Futures Trading Commission (CFTC) data showed.
Trading Ideas:
–Gold trading range for the day is 30576-31170.
–Gold prices looks to trade with firmness buoyed by safe-haven demand as Italy’s budget plan sets it on course for a potential clash with the European Union.
–Federal Reserve Chairman Jerome Powell said that the U.S. central bank plans gradual increases to interest rates.
–Investors have also opted to buy the dollar and U.S. Treasury bonds as safe investments instead of gold.
Courtesy: Kedia Commodities
Source: Commodityonline.com
