MCX Silver under short covering; Resistance seen at 39739
MCX Crude Oil under short covering; Support seen at 3628
MCX Natural Gas likely to move in a range of 234.6-272.4
MCX Copper under short covering
MCX Zinc likely to move in a range of 174.2-178.4
Technically Gold market is under short covering and getting support at 32101 and below same could see a test of 32022 level, And resistance is now likely to be seen at 32268, a move above could see prices testing 32356.
Gold on MCX settled up 0.12% at 32180 as support seen from Rupee weakness which plunged by 13 paise to close at one-month low of 71.05 against the US dollar amid strengthening greenback and surging crude oil prices.
Sentiments now turned bullish for Gold prices and today we can see bounce on expectations of a pause in U.S. interest rate hikes and as the dollar weakened against the pound after lawmakers voted down British Prime Minister Theresa May’s deal to leave the European Union.
British lawmakers defeated May’s Brexit divorce deal by a crushing margin, triggering political chaos that could lead to a disorderly exit from the EU or even to a reversal of the 2016 decision to leave.
While Multiplying risks to the U.S. recovery, including now a self-imposed government shutdown, have broadened calls among even hawkish Federal Reserve officials to be patient before raising interest rates again.
Last night the US dollar index jumped to 96.26, the highest since January 4, after data showed that economic growth in Germany slowed in 2018. The pound increased against the euro and the US dollar as the British parliament voted against Prime Minister Theresa May’s Brexit deal.
Also ECB President Mario Draghi warned on Tuesday that the eurozone economy was weakening unexpectedly amid rising headwinds originating outside the currency union.
Now a day ahead the US is expected to release data on December’s retail sales and import price index, Germany will release its CPI and retail sales for December, and the EIA will release the US weekly crude inventory data.
Trading Ideas:
–Gold trading range for the day is 32022-32356.
–Gold steadied as a bounce in stocks stoked interest in riskier assets, although investors remained cautious ahead of a key Brexit vote.
–Chinese data reinforced concerns that U.S. tariffs were taking a toll on Chinese goods, and that China’s 2019 growth could be one of the lowest since 1990.
–Hedge funds and money managers raised their net long position in Comex gold in the week to Dec. 18, the U.S. Commodity Futures Trading Commission said.
Courtesy: Kedia Commodities
Source: Commodityonline.com
