MCX Gold under short covering; Support seen at 33268

Technically Gold market is under short covering as market has witnessed drop in open interest by0.63% to settled at 14826 while prices up 67 rupees.

Now MCX Gold is getting support at 33268 and below same could see a test of 33169 level, And resistance is now likely to be seen at 33532, a move above could see prices testing 33697.

Gold on MCX settled up 0.2% at 33367 as the dollar eased as trade tensions faded, but regained most of the lost ground as the day progressed. Trade tensions easing as the U.S. President Donald Trump decided to delay the imposition of additional tariffs on goods imported from China.

Trump, who said trade talks are seeing a substantial progress on a series of divisive areas, including intellectual property protection, technology transfers, agriculture, services and currency, indicated a likely meeting with Chinese President Xi Jinping to reach a final deal.

U.S. President Donald Trump said he may soon sign a deal to end a trade war with Chinese President Xi Jinping if their countries can bridge remaining differences, saying negotiators were “very, very close” to a deal.

Physical gold demand in Japan slackened in the week as prices rallied, while a market correction towards the latter half of the week lured some buyers back in India and Singapore. In India, dealers were offering a discount of up to $1 an ounce to official domestic prices, down from $6 on Wednesday, and compared with last week’s $5 discount range.

In China, the world’s biggest gold consumer, premiums were unchanged from the previous week at $7-$10 an ounce as demand remained relatively quiet. Powell will be testifying on U.S. monetary policy and the economy before the Senate Banking Committee on Tuesday and Wednesday.

Trading Ideas:
–Gold trading range for the day is 33169-33697.
–Gold gained as the dollar eased as trade tensions faded, but regained most of the lost ground as the day progressed.
–Trade tensions easing as the U.S. President Donald Trump decided to delay the imposition of additional tariffs on goods imported from China.
–U.S. President Donald Trump said he may soon sign a deal to end a trade war with Chinese President Xi Jinping if their countries can bridge remaining differences.

Courtesy: Kedia Commodities