MCX Gold market under long liquidation; Support seen at 30764
Commodity Online | September 19 2016
UPDATED 11:09:40 IST

MCX Mentha Oil likely to move in a range of 931.1-948.7

MCX Cotton under fresh buying; Support seen at 17950

MCX Aluminium may trade between 141.5-143.9 levels

NCDEX Jeera under fresh selling; Resistance seen at 14140

MCX Nickel likely to move in a range of 1040.5-1072.9

Gold on MCX settled down -0.31% at 30813 after data showing faster-than-expected growth in U.S. consumer prices last month helped support the case for the Federal Reserve to raise interest rates later this year and the dollar jumped. Demand for gold in India remained lackluster in the week as higher prices hampered consumer purchases, though discounts narrowed due to a correction in the spot rate. In India, the world's second-biggest gold consumer, discounts on official domestic prices came down this week to $20 an ounce, from last week's $32.

In the past few months, demand in India has remained sluggish due to higher prices and as droughts hit purchases in some rural areas. India's gold imports in August plunged 77.5 percent from a year earlier to $1.12 billion. Demand for gold is expected to strengthen in the final quarter as India gears up for the wedding season as well as festivals such as Diwali and Dussehra, when buying the precious metal is considered auspicious.

With China's financial markets closed from Thursday through Sunday for the Mid-Autumn Festival, physical activity in the world's biggest gold consumer is expected to be quiet. India's gold imports fell for a seventh straight month in August to $1.1 billion as sluggish demand and record high discounts prompted banks and refineries to reduce overseas purchases of bullion.

Technically market is under long liquidation as market has witnessed drop in open interest by -2.78% to settled at 7492 while prices down -97 rupee, now Gold is getting support at 30764 and below same could see a test of 30715 level, and resistance is now likely to be seen at 30898, a move above could see prices testing 30983.

Trading Ideas:
--Gold trading range for the day is 30715-30983.
--Gold dropped after data showing faster-than-expected growth in U.S. consumer prices last month helped support the case for Fed to raise interest rates.
--With an improvement in consumer expectations offset by a deterioration in views of current economic conditions, University of Michigan showed a report.
--SPDR gold trust holdings gained by 1.11% i.e. 10.39 tonnes to 942.61 tonnes from 932.22 tonnes.

Courtesy: Kedia Commodities