Commodity Trading Tips for Gold by Kedia Commodity
Commodity Trading Tips for Gold by Kedia Commodity

Gold on MCX settled up 0.28% at 28742 as uncertainty over U.S. President Donald Trump's tax and investment plans and elections in Europe fuelled demand for bullion as a safe haven. Gold rebounded from early losses as the dollar turned flat after a Federal Reserve official's seemingly dovish remarks and uninspiring data on the U.S. economy tamped down the sanguine mood from earlier in the week. Earlier in the session, gold had dropped by the most in over than three weeks. It failed to break resistance at its 200-day moving average, triggering early technical selling. An index of world stocks dipped on Friday as investors locked in profits, also boosting gold. Data showing the largest annual increase in U.S. inflation in nearly five years and comments by the president of the New York Federal Reserve meanwhile reinforced expectations of U.S. interest rate hikes this year. Gold is underpinned in the coming months by doubts over Trump's ability to enact tax cuts and investment spending and an uncertain political outlook in Europe. Gold demand in India rose this week due to a festival and as local prices adjusted to an appreciating rupee, while higher prices kept a check on demand elsewhere in Asia. Dealers in India were charging a premium of up to $1 an ounce over official domestic prices. They were charging a premium of $2.00 last week. In top consumer China, premiums fell to about $8 to $10 an ounce against the international benchmark from levels $10 to $12 last week. Technically, now Gold is getting support at 28621 and below same could see a test of 28499 level, And resistance is now likely to be seen at 28820, a move above could see prices testing 28897.

Trading Ideas:

# Gold trading range for the day is 28499-28897.

# Gold prices gained as uncertainty over U.S. President Donald Trump's tax and investment plans and elections in Europe fuelled demand for bullion as a safe haven.

# Federal Reserve official's seemingly dovish remarks and uninspiring data on the U.S. economy tamped down the sanguine mood from earlier in the week.

# Comments by the president of the New York Federal Reserve meanwhile reinforced expectations of U.S. interest rate hikes this year.




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