Natural Gas market under short covering; Support seen at 227.8
Crude Oil market under fresh selling; Support seen at 3580
Silver market under fresh buying; Support seen at 39358
MCX Aluminium likely to move in a range of 126.5-130.7
MCX Mentha Oil under fresh selling; Support seen at 1567.4
Technically Gold market is under short covering as market has witnessed drop in open interest by 1.2% to settled at 12157 while prices up 213 rupees.
Now MCX Gold is getting support at 32004 and below same could see a test of 31867 levels and resistance is now likely to be seen at 32249, a move above could see prices testing 32357.
Gold on MCX settled up 0.67% at 32141 supported by expectations that the U.S. Federal Reserve will not raise rates this year. Market participants think that worries of slowing domestic and global growth as well as tame U.S. inflation will make Fed policymakers hesitant to raise interest rates in the world’s largest economy.
The central bank had the ability to be patient on monetary policy given stable price measures, U.S. Federal Reserve Chairman Jerome Powell said last week, and he downplayed predictions from policymakers suggesting interest rates would be raised twice more this year. Investors kept a wary eye on looming Chinese trade data on increasing signs a slowdown in the world’s second-biggest economy is dragging on global growth.
Markets awaited trade data from China later in the day, with recent signs Asia’s largest economy was losing momentum and the government planning to lower its 2019 economic growth target. Physical gold premiums rose in China last week as investment demand firmed on worries over global growth and a softening dollar, though Indian buyers remained on the sidelines ahead of the wedding season.
Meanwhile, investors were also worried about a partial U.S. government shutdown over President Donald Trump’s demand for $5.7 billion to build a wall along the U.S.-Mexico border, which entered its 24th day, making it the longest shuttering of federal agencies in the U.S. history, with no end in sight.
Trading Ideas:
–Gold trading range for the day is 31867-32357.
–Gold prices inched up supported by expectations that the U.S. Federal Reserve will not raise rates this year.
–Market participants think that worries of slowing domestic and global growth as well as tame U.S. inflation will make Fed policymakers hesitant to raise interest rates.
–The central bank had the ability to be patient on monetary policy given stable price measures, U.S. Federal Reserve Chairman Jerome Powell said.
Courtesy: Kedia Commodities
Source: Commodityonline.com
