Fresh buying seen in MCX Gold; Support seen at 29639
Commodity Online | October 14 2016
UPDATED 10:27:19 IST

MCX Nickel likely to move in a range of 1043.9-1081.7

MCX Copper under fresh buying; Support seen at 520

MCX Zinc under long liquidation; Resistance seen at 192.3

MCX Natural Gas under long liquidation; Resistance seen at 191.1

MCX Crude Oil under short covering; Support seen at 2876

Gold on MCX settled up 0.2% at 29709 as the dollar declined and after world shares slipped following renewed worries about China's economy. Some investors switched to gold as world stock markets stumbled to three-week lows following September trade data from China, which revived concern about the world's second-biggest economy. Markets will next look to Friday's U.S. retail sales data and remarks from Fed Chair Janet Yellen, who will address a Boston Fed economics conference at which Boston Fed governor Eric Rosengren will also speak.

The number of Americans filing for unemployment benefits held at a 43-year low last week, pointing to sustained labour market strength that could pave the way for the Fed to raise interest rates in December. The U.S. central bank may want to hold off on monetary policy changes until after the U.S. presidential election on Nov. 8, Philadelphia Fed President Patrick Harker said on Thursday. China's September exports fell 10 percent from a year earlier, far worse than expected, while imports unexpectedly shrank after picking up in August, suggesting signs of steadying in the world's second-largest economy may be short-lived.

Azerbaijan's top gold producer Anglo Asian Mining said its January-September output was 7.8 percent lower than in the same period last year at 49,874 ounces and it was cutting its 2016 production target. Holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.28 percent to 961.57 tonnes. Technically market is under fresh buying as market has witnessed gain in open interest by 1.28% to settled at 8256 while prices up 58 rupee, now Gold is getting support at 29639 and below same could see a test of 29569 level, and resistance is now likely to be seen at 29832, a move above could see prices testing 29955.

Trading Ideas:
--Gold trading range for the day is 29569-29955.
--Gold edged higher as the dollar declined and after world shares slipped following renewed worries about China's economy.
--Some investors switched to gold as world stock markets stumbled to three-week lows following September trade data from China.
--SPDR gold trust holdings gained by 0.28% i.e. 2.67 tonnes to 961.57 tonnes from 958.90 tonnes.

Courtesy: Kedia Commodities

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