MCX Crude Oil may trade in a range between 3639-3941
MCX Silver may trade in a range between 39735-40607
NCDEX Chana under long liquidation
MCX Cotton under fresh selling; Resistance seen at 20960
MCX Mentha Oil expected to trade in a range between 1489.6-1561.4
Technically Gold market is under short covering as market has witnessed drop in open interest by 12.83% to settled at 5821.
Now MCX Gold is getting support at 32651 and below same could see a test of 32401 level, And resistance is now likely to be seen at 33045, a move above could see prices testing 33189.
Gold on MCX settled up 1.08% at 32900 as investors shun riskier assets on worries over escalation in Sino-U.S. trade tensions after the U.S. Justice Department charged China’s Huawei Technologies Co Ltd HWT.UL with fraud.
The United States charged Huawei, its chief financial officer and two affiliates with bank and wire fraud to violate sanctions against Iran in a case that has escalated tensions with Beijing. fear the charges could complicate high-level trade talks set to begin on Wednesday where Chinese Vice Premier Liu He will meet with U.S. Trade Representative Robert Lighthizer and others.
The U.S. Federal Reserve’s two-day policy meeting begins later in the day, where the central bank is expected to leave interest rates unchanged. The Fed raised interest rates four times last year, but some officials have said they will be patient in raising rates given the stalemate over global trade, the U.S. federal government shutdown, and waning business and consumer confidence.
Tends to rise on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion. Reflecting investor sentiment in bullion, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.73 percent to 815.64 tonnes on Monday, their highest since June 2018.
China’s net gold imports via main conduit Hong Kong in December halved from the previous month, data showed on Monday, as the world’s top gold consumer likely limited import quotas for its banks while demand for jewellery waned towards end-2018.
Trading Ideas:
–Gold trading range for the day is 32401-33189.
–Gold rose as investors shun riskier assets on worries over escalation in Sino-U.S. trade tensions.
–The U.S. Federal Reserve’s two-day policy meeting begins later in the day, where the central bank is expected to leave interest rates unchanged.
–The Fed raised interest rates four times last year, but some officials have said they will be patient in raising rates given the stalemate over global trade.
Courtesy: Kedia Commodities
Source: Commodityonline.com
