MCX Gold under long liquidation; Support seen at 46002
Commodity Online | May 27 2020
UPDATED 09:30:37 IST

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Technically Gold market is under long liquidation as market has witnessed drop in open interest by 23.15% to settled at 6044 while prices down 651 rupees.

Now MCX Gold is getting support at 46002 and below same could see a test of 45683 levels, and resistance is now likely to be seen at 46895, a move above could see prices testing 47469.

Gold yesterday settled down by 1.39% at 46322 as signs of economic life in Europe encouraged a friendlier tone towards risk assets and dampened demand for havens.

Prices downside seen limited moderately by sustained doubts about the fate of a Franco-German proposal for the EU to borrow in its own name and distribute grants to member states worst hit by the coronavirus.

China's foreign ministry office in Hong Kong and the city's security chief defended proposed security laws by describing some acts in mass pro-democracy protests last year as terrorism.

Helping risk-on sentiment, a survey showed that German business morale rebounded in May, recovering from its most dramatic fall on record the previous month.

Hedge funds and money managers increased their bullish positions in COMEX gold and silver contracts in the week to May 19, the U.S. Commodity Futures Trading Commission (CFTC) said.

China's net gold imports via Hong Kong in April crashed 176% to -10.3 tonnes from the previous month, Hong Kong Census and Statistics Department data showed.

Net imports via Hong Kong to China, the world's top consumer of gold, dropped from 13.523 tonnes in March, the report showed. Total gold imports via Hong Kong fell over 70% to 4.213 tonnes from 14.208 tonnes in March.

Trading Ideas:
--Gold trading range for the day is 45683-47469.
--Gold prices slipped as signs of economic life in Europe encouraged a friendlier tone towards risk assets and dampened demand for havens.
--Prices downside seen limited moderately by sustained doubts about the fate of a Franco-German proposal for the EU to borrow in its own name.
--Helping risk-on sentiment, a survey showed that German business morale rebounded in May, recovering from its most dramatic fall on record the previous month.

Courtesy: Kedia Commodities