Technically Gold market is under long liquidation as market has witnessed drop in open interest by 3.27% to settled at 6575 while prices down 616 rupees.
Now MCX Gold is getting support at 45820 and below same could see a test of 45583 levels, and resistance is now likely to be seen at 46414, a move above could see prices testing 46771.
Gold yesterday settled down by 1.32% at 46056 pressured by an overall uptick in appetite for riskier assets, as investors continued to position themselves for a sooner-than-expected interest rate hike from the U.S. Federal Reserve.
Pressure seen amid a general improvement in risk aversion as investors hope the Evergrande debt crisis can be contained and digest recent monetary policy updates.
The U.S. central bank said it will likely begin reducing its bond purchases as soon as November and signalled interest rate increases may follow more quickly than expected, as the Fed’s turn from pandemic crisis policies gains momentum.
The number of Americans filing new claims for jobless benefits unexpectedly rose last week amid a surge in California, but the labor market continues to steadily recover. Initial claims for state unemployment benefits increased 16,000 to a seasonally adjusted 351,000 for the week ended Sept. 18, the Labor Department said.
There was a 24,221 jump in unadjusted claims in California. That offset a sharp decrease in filings in Louisiana, which was devastated by Hurricane Ida in late August. The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 750 to 335,750 last week.
Trading Ideas:
–Gold trading range for the day is 45583-46771.
–Gold dropped pressured as investors continued to position themselves for a sooner-than-expected interest rate hike from the U.S. Federal Reserve.
–The U.S. central bank said it will likely begin reducing its bond purchases as soon as November and signalled interest rate increases may follow more quickly than expected.
–Pressure seen amid a general improvement in risk aversion as investors hope the Evergrande debt crisis can be contained.
Courtesy: Kedia Commodities
Source: Comodity Online
