MCX Nickel expected to trade between 765.3-805.7
MCX Aluminium under long liquidation
MCX Mentha Oil under fresh selling; Resistance seen at 1363.6
Zinc market under fresh selling; Support seen at 182.4
Copper market under short covering; Support seen at 438.3
Technically MCX Gold is getting support at 31491 and below same could see a test of 31428 levels and resistance is now likely to be seen at 31629, a move above could see prices testing 31704.
Gold traded in range as the dollar rose ahead of the U.S. Federal Reserve’s interest rate decision. The dollar gained as investors turned nervous about an economic slowdown in China and was further supported by weakness in the euro and pound.
The U.S. Trade Representative’s office officially changed the scheduled date of a tariff rate increase on $200 billion worth of Chinese goods on March 2, 2019 as the United States and China pursue talks on trade and intellectual property.
Markets are awaiting the Federal Open Market Committee (FOMC) meeting on Dec. 18-19, where the central bank is widely expected to raise interest rates for the fourth time this year. Demand for physical gold was lacklustre in major Asian hubs this week as high prices dented bullion’s appeal going into the holiday season, with buying interest in second biggest consumer India likely to be subdued for the rest of the year.
Demand was subdued in India as well, with retail buying curtailed by a rally in domestic bullion prices to their highest level in seven weeks. Dealers in India were offering a discount of up to $4 an ounce over official domestic prices, versus a $1.5 discount in the previous week.
Jewellers were not making big purchases as they expect weak demand in the next few weeks. Top consumer China saw premiums of $5-$6.50 per ounce being charged over the benchmark, down from last week’s $5-$7.4 range.
Trading Ideas:
–Gold trading range for the day is 31428-31704.
–Gold traded in range as the dollar rose ahead of the U.S. Federal Reserve’s interest rate decision.
–US President Donald Trump says “hopefully Fed won’t be raising rates anymore”
–US Budget deficit $305.4B Fiscal YTD which is 51% higher than year prior.
Courtesy: Kedia Commodities
Source: Commodityonline.com
