MCX Gold under long liquidation; Support seen at 37849
Commodity Online | September 12 2019
UPDATED 09:00:16 IST

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Technically Gold market is under long liquidation as market has witnessed drop in open interest by 8.62% to settled at 12695 while prices down 279 rupees.

Now MCX Gold is getting support at 37849 and below same could see a test of 37725 levels, and resistance is now likely to be seen at 38178, a move above could see prices testing 38383.

Gold on MCX settled down 0.73% at 37974 as prices remained under pressure amid a broader uptick in risk-sentiment ahead of major central bank meetings, though downside seen limited supported by lingering concerns over the global economy and U.S.-China trade tensions.

The ECB decision is likely to set the tone for upcoming rate-setting decisions by the U.S. Federal Reserve and the Bank of Japan next week. On the trade front, a senior White House adviser tamped down expectations for the next rounds of U.S.-China trade talks, urging investors, businesses and the public to be patient about resolving the protracted dispute.

China announced its first batch of tariff exemptions for 16 types of U.S. products, days ahead of a planned meeting between trade negotiators from the two countries to try and de-escalate their bruising tariff row. The exemptions will apply to U.S. goods including some anti-cancer drugs and lubricants, as well as the animal feed ingredients whey and fish meal, the Ministry of Finance said in a statement on its website.

Beijing said in May that it would start a waiver programme, amid growing worries over the cost of the protracted trade war on its already slowing economy. China has imposed several rounds of duties on U.S. goods in retaliation against U.S. Section 301 tariffs, beginning last year in July and August with a 25% levy on about $50 billion of U.S. imports.

Trading Ideas:
--Gold trading range for the day is 37725-38383.
--Gold prices remained under pressure amid a broader uptick in risk-sentiment ahead of major central bank meetings.
--Though downside seen limited supported by lingering concerns over the global economy and U.S.-China trade tensions.
--Beijing said in May that it would start a waiver programme, amid growing worries over the cost of the protracted trade war on its already slowing economy.

Courtesy: Kedia Commodities

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