MCX Gold likely to move in a range of 32651-33175

Technically MCX Gold is getting support at 32751 and below same could see a test of 32651 level, And resistance is now likely to be seen at 33013, a move above could see prices testing 33175.

Gold on MCX settled down 0.59% at 32851 as investors looked to the safety of the dollar to stave off risks from the U.S.- China trade spat, as concerns mounted over a slowdown in global growth.

New round of trade talks between China and the United States started in Beijing with world’s two largest economies trying to hammer out a deal before a March 1 deadline, after which U.S. tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent.

Sino-U.S. trade tensions have rattled financial markets since last year and also underpinned the dollar’s safe-haven appeal. Meanwhile, U.S. congressional negotiators said they had reached a tentative deal on border security funding that would avert another partial government shutdown due to start on Saturday, but provided no details.

Scrap gold supplies in India, the world’s second-biggest consumer of bullion, may increase this quarter as a rally in local gold prices has prompted consumers to sell old trinkets and jewellery. Rising scrap supplies are likely to cause India’s gold imports to continue to fall this year which could weigh on global prices that are trading near their highest since the end of April.

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. 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.

Trading Ideas:
–Gold trading range for the day is 32651-33175.
–Gold fell as investors looked to the safety of the dollar to stave off risks from the U.S.- China trade spat, as concerns mounted over a slowdown in global growth.
–New round of trade talks between China and the US started in Beijing with world’s two largest economies trying to hammer out a deal before a March 1 deadline.
–Sino-U.S. trade tensions have rattled financial markets since last year and also underpinned the dollar’s safe-haven appeal.

Courtesy: Kedia Commodities