Commodity Trading Tips for Gold by Kedia Commodity

Gold on MCX settled down -0.82% at 29089 after robust U. S. economic data pointed to a stronger economy, increasing the likelihood that the Federal Reserve will raise U. S. interest rates. Data showing rising U. S. wholesale inventories and an unexpectedly low number of Americans filing for unemployment benefits pushed up the dollar. Chicago Federal Reserve President Charles Evans, a voter on policy this year, told reporters it is reasonable to expect the Fed to raise rates three times this year. However, St. Louis Fed President James Bullard said interest rates can likely remain low through at least 2017, with no clear sense yet of whether the Trump administration's policies will spark higher inflation or growth. Uncertainty over U. S. President Donald Trump's policies has driven up gold prices, but the effect may be limited to the short-term only. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged on Thursday after rising for six straight sessions. Uncertainty about European politics has boosted gold in recent sessions. Polls this week have shown German Chancellor Angela Merkel falling behind a candidate from the country's Social Democrats in this year's elections scheduled to take place in September. Polls have also suggested France's Marine Le Pen, who has vowed to pull France out of the euro zone, is gaining ground. Technically market is under long liquidation as market has witnessed drop in open interest by -1.72% to settled at 6866 while prices down -241 rupees, now Gold is getting support at 28968 and below same could see a test of 28847 level, And resistance is now likely to be seen at 29299, a move above could see prices testing 29509.

Trading Ideas:

# Gold trading range for the day is 28847-29509.

# Gold slipped after robust U. S. economic data pointed to a stronger economy, increasing the likelihood that the Federal Reserve will raise U. S. interest rates.

# Data showing rising U. S. wholesale inventories and an unexpectedly low number of Americans filing for unemployment benefits pushed up the dollar.

# Fed’s Charles Evans, a voter on policy this year, told reporters it is reasonable to expect the Fed to raise rates three times this year.