Gold market under long liquidation; Support seen at 32837

MCX Zinc likely to trade in a range between 194.4-201.4

MCX Copper expected to trade between 459.1-472.3 levels

MCX Natural Gas may trade in a range between 196.1-204.3

Crude Oil market under long liquidation; Support seen at 4020

MCX Silver may trade in a range between 39401-40781

Technically Gold market is under long liquidation as market has witnessed drop in open interest by 4.68% to settled at 13719 while prices down 305 rupees.

Now MCX Gold is getting support at 32837 and below same could see a test of 32692 levels and resistance is now likely to be seen at 33256, a move above could see prices testing 33530.

Gold on MCX settled down -0.92% at 32981 as the dollar recouped losses on stronger-than-expected U.S. economic data. Pressure also seen as the dollar recouped losses after cautious comments from U.S. Trade Representative Robert Lighthizer dented investors’ hopes for a closure to the tariff war with China.

Prices also dropped as investors weighed geopolitical news and the Federal Reserve Chairman’s testimonies about the central bank’s monetary policy stance. Uncertainty about U.S.-China trade deal increased after U.S. Trade Representative Robert Lighthizer told members of the House Ways and Means Committee that China needs to go beyond pledging to buy more U.S. goods to reach to a long-term trade agreement.

Lighthizer told a Congressional hearing it is too early to predict the outcome of ongoing trade talks with Beijing and the United States will need to maintain the threat of tariffs on Chinese goods for years even if the two sides strike a deal. During his testimony to the Senate Banking Committee, Powell reiterated that the Fed will be patient in hiking interest rates.

Meanwhile, U.S. President Donald Trump and North Korean leader Kim Jong Un failed to reach an agreement on denuclearisation of the Korean peninsula at their summit in Vietnam, the White House said. In U.S. economic news, the National Association of Realtors’ report said its pending home sales index spiked by 4.6% to 103.2 in January after tumbling by 2.3% to a downwardly revised 98.7 in December.

Trading Ideas:
–Gold trading range for the day is 32692-33530.
–Gold prices dropped as the dollar recouped losses on stronger-than-expected U.S. economic data.
–Prices also dropped as investors weighed geopolitical news and the Federal Reserve Chairman’s testimonies about the central bank’s monetary policy stance.
–During testimony to the Senate Banking Committee, Fed’s Powell reiterated that the Fed will be patient in hiking interest rates.

Courtesy: Kedia Commodities

Source: Commodityonline.com