Bullion counter may witness bounce back at lower levels
Commodity Online | November 08 2016
UPDATED 09:43:47 IST

NCDEX Chana under long liquidation; Support seen at 4100

MCX Mentha Oil likely to move in a range of 978.4-1005.4

MCX Cotton under short covering; Support seen at 15870

MCX Aluminium may trade between 136-137.8 levels

NCDEX Jeera under short covering; Resistance seen at 13820

Bullion counter may witness bounce back at lower levels as US elections today will give further give further direction to the prices. Gold can move in range of 30000-30300 while silver can move in range of 42600-43500 in near term. Uncertainty ahead of Tuesday’s U S presidential election and a possible U S interest rate hike in December has boosted demand for gold and silver in the United States. Gold is a traditional safe-haven market, which investors flock to in times of uncertainty.

Several analysts have forecast that gold prices will rally if Republican Donald Trump wins the Tuesday election, while they could rise to a lesser degree or even fall if Democrat Hillary Clinton wins. Uncertainty about the prospect of the Federal Reserve raising interest rates for the first time in a year next month is also fuelling gold and silver sales, dealers said. By late last week, Fed Funds futures implied that traders saw a 67% chance of the Fed raising rates at its December meeting. At the U S Mint, American Eagle gold coin sales jumped 23% in October from September, while they more than doubled in silver.

Courtesy: Smc Comtrade