NCDEX Ref. Soya Oil under fresh selling; Resistance seen at 754
NCDEX Soyabean under long liquidation
MCX Gold under short covering; Support seen at 32101
MCX Silver under short covering; Resistance seen at 39739
MCX Crude Oil under short covering; Support seen at 3628
Technically MCX Gold is getting support at 32161 and below same could see a test of 32037 levels and resistance is now likely to be seen at 32358, a move above could see prices testing 32431.
Gold on MCX settled up 0.33% at 32286 supported by uncertainty around Brexit after lawmakers voted down British Prime Minister Theresa May’s deal to leave the European Union, while calls grew for a pause in U.S. rate hikes.
In separate appearances, various Fed policymakers agreed the central bank should pause further rate hikes until it is clear how much the U.S. economy will be held back by larger risks like slowing growth in China and narrower ones like the ongoing budget stalemate in Washington.
Gold tends to gain on expectations of lower interest rates, as they reduce the opportunity cost of holding non-yielding bullion. The U.S. economy is taking a larger-than-expected hit from a partial government shutdown, White House estimates showed, with the longest such shutdown in U.S. history dragged into its 26th day.
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. They also switched to a net long position in silver, the U.S. Commodity Futures Trading Commission said.
Speculators raised their net long position in gold by 14,317 contracts to 24,569 contracts, CFTC data showed, to its highest net long position in six months. The Federal Statistical Office of Germany) noted that the German economy had grown for the ninth year in a row, “although growth has lost momentum.” The US producer price index (PPI) for final demand fell 0.2% in December, seasonally adjusted, the US Bureau of Labor Statistics reported.
Trading Ideas:
–Gold trading range for the day is 32037-32431.
–Gold edged up supported by uncertainty around Brexit after lawmakers voted down British Prime Minister Theresa May’s deal to leave the European Union.
–An increased chance of a disorderly Brexit is supporting gold’s safe-haven appeal due to a risk-off sentiment.
–The U.S. economy is taking a larger-than-expected hit from a partial government shutdown, White House estimates showed.
Courtesy: Kedia Commodities
Source: Commodityonline.com
