Technically Gold market is under fresh buying as market has witnessed gain in open interest by 9.5% to settled at 9213 while prices up 559 rupees.
Now MCX Gold is getting support at 48389 and below same could see a test of 48132 levels, and resistance is now likely to be seen at 48790, a move above could see prices testing 48934.
Gold yesterday settled up by 1.16% at 48646 as the dollar index weakened after the Federal Reserve avoided any drastic changes to its monetary policy.
As expected, the Federal Reserve suggested it would end pandemic-era asset purchases earlier and hike interest rates three times next year amid low unemployment and high inflation.
Meanwhile, the Bank of England unexpectedly hiked its bank rate to 0.25% citing mounting inflationary pressures. In contrast, today ECB is also likely to signal that it will keep buying bonds throughout the year, in an attempt to rule out any rate hike in 2022.
The number of Americans filing new claims for unemployment benefits increased moderately last week, remaining at levels consistent with tightening labor market conditions.Initial claims for state unemployment benefits rose 18,000 to a seasonally adjusted 206,000 for the week ended Dec. 11, the Labor Department said.
There were a record 11.0 million job openings at the end of October.The unemployment rate fell to a 21-month low of 4.2% in November. There are signs that the labor market crunch is starting to ease.
The Bank of England on Thursday became the world’s first major central bank to raise borrowing costs since the coronavirus pandemic hammered the global economy, as it said inflation was likely to hit 6% in April three times its target level.
Trading Ideas:
–Gold trading range for the day is 48132-48934.
–Gold gained as the dollar index weakened after the Federal Reserve avoided any drastic changes to its monetary policy.
–The Federal Reserve suggested it would end pandemic-era asset purchases earlier and hike interest rates three times next.
–U.S. weekly jobless claims rise moderately as labor market tightens.
Courtesy: Kedia Commodities
Source: Comodity Online