Technically Gold market is under fresh buying as market has witnessed gain in open interest by 1.17% to settled at 11207 while prices up 393 rupees.
Now MCX Gold is getting support at 47438 and below same could see a test of 47080 levels, and resistance is now likely to be seen at 48198, a move above could see prices testing 48600.
Gold yesterday settled up by 0.83% at 47797 as a weaker dollar and worries about rising inflation bolstered demand for the safe-haven asset.
Some investors view gold as a hedge against higher inflation that could follow stimulus measures. Atlanta U.S Fed President Raphael Bostic said he expects high inflation to persist into 2022 and the central bank to raise interest rates by the end of next year.
Elsewhere, euro zone inflation expectations hit their highest levels in years, putting additional pressure on the European Central Bank and its insistence on maintaining crisis-era stimulus.Physical gold demand in major Asian hubs stalled after rising prices curtailed retail purchases, while silver piqued investor interest in Singapore.
Indian dealers were offering a discount of up to $1.5 an ounce over official domestic prices, down from last week’s premium of $2. Demand is expected to pick up ahead of the Diwali festival next month.
Premiums in China were at $7-$11 an ounce charged over global benchmark spot prices, little changed from last week’s $6-$12. Premiums in Singapore were at $1.25-$1.70 per ounce versus last week’s $0.75-$1.80 with higher prices and COVID-19 induced restrictions keeping demand in check.
Trading Ideas:
–Gold trading range for the day is 47080-48600.
–Gold prices rose as a weaker dollar and worries about rising inflation bolstered demand for the safe-haven asset.
–Atlanta U.S Fed President Raphael Bostic said he expects high inflation to persist into 2022 and the central bank to raise interest rates by the end of next year.
–Euro zone inflation expectations hit their highest levels in years, putting additional pressure on the ECB and its insistence on maintaining crisis-era stimulus.
Courtesy: Kedia Commodities
Source: Comodity Online
