Technically Gold market is under short covering as market has witnessed drop in open interest by 0.93% to settled at 13149 while prices up 147 rupees.
Now MCX Gold is getting support at 47016 and below same could see a test of 46834 levels, and resistance is now likely to be seen at 47400, a move above could see prices testing 47602.
Gold yesterday settled up by 0.31% at 47198 as rising inflation fears cut risk appetite and boosted demand for the safe-haven metal.A global energy crunch has threatened the economic outlook and fanned inflation fears, driving some investors toward safe-haven assets.
The Democratic-controlled U.S. House of Representatives is expected to give final approval to a Senate-passed bill temporarily raising the government’s borrowing limit to $28.9 trillion, putting off the risk of default until early December.
Democrats, who control the House by a mere four-vote margin, were expected to maintain party discipline and pass the hard-fought, $480 billion debt limit increase, only to face another deadline within weeks for avoiding both a historic debt default and a temporary government shutdown.
The Senate’s vote last week to raise the limit – often a routine step – turned into a partisan brawl , with Republicans trying to link the measure to President Joe Biden’s goal of passing a multitrillion-dollar pair of bills with spending to bolster infrastructure and social services while fighting climate change. Focus is on minutes of the Fed’s Sept. 21-22 policy meeting and the consumer price index, both due on Wednesday.
Trading Ideas:
–Gold trading range for the day is 46834-47602.
–Gold prices rose as rising inflation fears cut risk appetite and boosted demand for the safe-haven metal.
–A global energy crunch has threatened the economic outlook and fanned inflation fears, driving some investors toward safe-haven assets.
–U.S. House expected to pass bill to hike debt ceiling, avert default.
Courtesy: Kedia Commodities
Source: Comodity Online
