MCX Mentha Oil under short covering; Support seen at 1498.5
NCDEX Chana under long liquidation
NCDEX Chana under long liquidation
MCX Cotton under long liquidation
NCDEX Jeera may move in a range of 16180-16660 levels
Technically Gold market is under short covering as market has witnessed drop in open interest by 5.63% to settled at 7052 while prices up 330 rupees.
Now MCX Gold is getting support at 32108 and below same could see a test of 31872 levels and resistance is now likely to be seen at 32481, a move above could see prices testing 32618.
Gold on MCX settled up 1.03% at 32343 amid concerns that a prolonged U.S. government shutdown could exacerbate an already slowing global growth, while markets awaited U.S.-China trade talks scheduled for next week.
Investors are worried about the economic impact of the longest U.S. government shutdown in history, now in its 34th day, with two bills to end the partial shutdown failing to win enough votes in the Senate.
The United States and China are “miles and miles” from resolving trade issues, but there is a fair chance the two countries will get a deal, U.S. Commerce Secretary Wilbur Ross said. Slowing global economy and hopes that the U.S. Federal Reserve will pause its multi-year rate hike cycle are supporting gold.
Benoit Coeure, a contender to become the European Central Bank’s next president, said it’s too early to judge whether the institution will raise interest rates in 2019. Speaking in Davos, the ECB Executive Board member told that the currency bloc’s persistent economic weakness “has surprised us” and officials will need time to decide how to react.
The central bank kept policy unchanged, affirming that rates will remain at current levels at least through the summer — despite investors betting that borrowing costs won’t start rising until next year.
Investors are worried about the economic impact of the longest U.S. government shutdown in history, now in its 34th day, with two bills to end the partial shutdown failing to win enough votes in the Senate.
Trading Ideas:
–Gold trading range for the day is 31872-32618.
–Gold prices gained amid concerns that a prolonged U.S. government shutdown could exacerbate an already slowing global growth.
–US and China are “miles and miles” from resolving trade issues, but there is a fair chance the two countries will get a deal, U.S. Commerce Secretary Wilbur Ross said.
–A synchronised global economic slowdown is under way and any escalation in the U.S.-China trade war would trigger a sharper downturn.
Courtesy: Kedia Commodities
Source: Commodityonline.com
