Commodity Trading Tips for Gold by Kedia Commodity

Gold on MCX settled up 0.14% at 28848 while prices were virtually unchanged in yesterday's session stung by a slightly stronger dollar. While sentiments still remain strong for Bullion which has been supported by update from CPM Group which said, Gold bullion investment will rise for the fourth straight year in 2017 as global political and economic factors are forecast to maintain buying interest. CPM forecast gold bullion investment at 17.6 million ounces in 2017, up from 17.4 million ounces in 2016 and the highest since 2012 when it was 29.2 million ounces. The company pegged global gold coin demand at 7.5 million ounces in 2017, up from 7 million ounces in 2016 and the highest since 2013. Now Gold investors are weighed on the outlook for the Trump administration’s fiscal-policy agenda following last week’s failed effort at overhauling the Affordable Care Act, known as Obamacare. The failure of President Donald Trump and the Republicans to pass the repeal of the Obamacare bill Friday makes this week a week of digestion of the fact and reaction to it. With the failure of the GOP health-care bill, the markets are confirming that despite the hype about President Trump’s ‘get things done’ ability, the government remains in political gridlock, with the majority disunited. Now traders will continue to eye U.S. economic data for hints on the pace and timing of interest-rate hikes by the Federal Reserve. Gold maintained its trading levels after data showed the U.S. trade deficit narrowed sharply in February. Consumer confidence in March rose to its highest level in over 16 years. Technically market is getting support at 28774 and below same could see a test of 28701 level, And resistance is now likely to be seen at 28906, a move above could see prices testing 28965.

Trading Ideas:

# Gold trading range for the day is 28701-28965.

# Gold settled flat as prices pulled back from its highs as the dollar and global equities recovered from recent losses.

# Kansas City Federal Reserve President Esther George said she needs more details on the Trump administration's fiscal proposals.

# SPDR gold trust holdings dropped by 0.21% i.e. 1.77 tonnes to 833.51 tonnes from 835.28 tonnes.