Crude Oil market under short covering; Support seen at 5509
Silver market under short covering; Support seen at 38460
MCX Natural Gas under long liquidation
MCX Copper likely to move in a range of 451.9-469.3
MCX Zinc may trade between 195.9-207.7 levels
Technically Gold market is under short covering as market has witnessed drop in open interest by -0.8% to settled at 12377 while prices up 63 rupees.
Now MCX Gold is getting support at 31210 and below same could see a test of 31136 levels and resistance is now likely to be seen at 31379, a move above could see prices testing 31474.
Gold on MCX settled up 0.2% at 31283 as pressure from the dollar’s strength and a bullish U.S. rate outlook was balanced by falling stock markets. U.S. long-dated Treasury yields fell in choppy trading, as investors took a respite from selling bonds that took rates to multi-year highs following recent economic data and on interest rate prospects over the next year and a half.
The IMF cut global economic growth forecasts for 2018 and 2019, as well as its U.S. and China estimates for next year, saying the two countries would feel the brunt of their trade war next year. Risks to the global financial system have risen over the past six months and could increase sharply if pressures in emerging markets escalate or global trade relations deteriorate further, the IMF said.
U.S. President Donald Trump on Tuesday again criticized the Federal Reserve, telling reporters the central bank is going too fast in raising rates when inflation is minimal and government data points to a strong economy. Trump said on Tuesday his second summit with North Korean leader Kim Jong Un would be held after U.S. congressional elections on Nov. 6.
U.S. inflation expectations for both one and three years into the future were unchanged last month, according to a Federal Reserve Bank of New York survey that painted a picture of price stability among consumers.
Trading Ideas:
–Gold trading range for the day is 31136-31474.
–Gold was steady as pressure from the dollar’s strength and a bullish U.S. rate outlook was balanced by falling stock markets.
–The International Monetary Fund cut its global economic growth forecasts for 2018 and 2019.
–The International Monetary Fund said in its updated World Economic Outlook that it was now expecting growth of 3.7%, down from the 3.9% growth it forecast in July.
Courtesy: Kedia Commodities
Source: Commodityonline.com
