MCX Gold under long liquidation; Support seen at 31245
Commodity Online | November 09 2018
UPDATED 10:26:28 IST

MCX Crude Palm Oil under short covering

Mentha Oil under long liquidation; Support seen at 1478.8

MCX Aluminium expected to trade between 130.6-137.8 levels

MCX Nickel may trade in range between 811.5-840.9

MCX Zinc may trade between 181.3-190.1 levels

Technically Gold market is under long liquidation as market has witnessed drop in open interest by 6.31% to settled at 10261 while prices down 183 rupees.

Now MCX Gold is getting support at 31245 and below same could see a test of 31084 levels and resistance is now likely to be seen at 31534, a move above could see prices testing 31662.

Gold slid to a one-week low as the dollar firmed in the wake of the U.S. midterm elections, with market participants now awaiting clues on the pace of interest rate hikes from the U.S. Federal Reserve.

The metal is on track to post a fifth straight session of losses, hurt more broadly by a recovery in investor appetite for nominally higher-risk assets like stocks. The dollar rose, pulling further away from the 2-1/2 week lows it hit on Wednesday, after the U.S. midterm elections delivered a broadly expected result, dampening gold’s appeal amongst holders of other currencies.

US midterm election results saw the Democrats take back in the House of Representatives and the GOP retaining a grip of the Senate. The election outcome is likely to result in gridlock on Washington. Eurozone retail sales remained unchanged in September after it expanded in August, preliminary data from Eurostat showed.

On a year-on-year basis, retail sales rose 0.8% in September, compared with a 0.9% growth had predicted. The annual gain for August was revised to 2.2% from 1.8%. Indicative of the prevailing investment sentiment in gold, holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell for a fourth straight session on Wednesday.       

Trading Ideas:
--Gold trading range for the day is 31084-31662.
--Gold slid as the dollar firmed in the wake of the U.S. midterm elections, with market participants now awaiting clues on the pace of interest rate hikes from the U.S. Federal Reserve.
--The Federal Reserve announced that it will maintain its monetary policy and indicated further gradual rate hikes before the end of the year.
-- India raised gold holdings by 6.53 tonnes to 586.46 tonnes in September 2018, according to IMF data.

Courtesy: Kedia Commodities

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