MCX Gold under long liquidation; Support seen at 46732
Commodity Online | May 26 2020
UPDATED 09:30:05 IST

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Technically Gold market is under long liquidation as market has witnessed drop in open interest by 6.29% to settled at 7865 while prices down 83 rupees.

Now MCX Gold is getting support at 46732 and below same could see a test of 46491 levels, and resistance is now likely to be seen at 47132, a move above could see prices testing 47291.

Gold yesterday settled down by 0.18% at 46973 as the dollar strengthened and share markets rose, though lingering trade tensions between the United States and China limited losses for the safe-haven metal.

Pressure also seen as shares gained as optimism over easing of lockdowns and signs of more stimulus for the battered euro zone economy helped sentiment.

Physical gold demand picked up in top Asian hubs as economies gradually come out of coronavirus lockdowns and as investors continued to buy bullion as a hedge against a worsening economic backdrop.

Dealers in top consumer China sold gold at discounts of $15-$20 an ounce versus benchmark spot prices, narrowing from last week's $28-$40 discounts. Consumption slightly improved in India too as a few jewellery stores opened after the government eased restrictions.

Jewellery shops in the southern state of Kerala opened after nearly two months but "customers are going through a difficult time due to the lockdown. Indicative of sentiment, SPDR Gold Trust holdings rose 0.4% to 1,116.71 tonnes on, while speculators increased their bullish positions in COMEX gold and silver contracts in the week to May 19.

Trading Ideas:
--Gold trading range for the day is 46491-47291.
--Gold prices fell in holiday-thinned trade as the dollar strengthened and share markets rose.
--Though lingering trade tensions between the United States and China limited losses for the safe-haven metal.
--Physical gold demand picked up in top Asian hubs as economies gradually come out of coronavirus lockdowns and as investors continued to buy bullion.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Coconut Oil 2.5 20500.00
Sugar 20 3430.00
Rubber 0.9 15600.00
Jeera 5 11000.00

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