MCX Gold under short covering; Resistance seen at 49465
Commodity Online | January 25 2021
UPDATED 09:50:23 IST

NCDEX Soyabean under fresh buying; Support seen at 4977

MCX Mentha Oil likely to move in a range of 945.3-961.3

MCX Aluminium may trade between 171-180 levels

MCX Nickel likely to move in a range of 1146.1-1240.7

MCX Zinc under short covering; Resistance seen at 219.8

Technically Gold market is under long liquidation as market has witnessed drop in open interest by 4.97% to settled at 5011 while prices down 308 rupees

Now MCX Gold is getting support at 48751 and below same could see a test of 48361 levels, and resistance is now likely to be seen at 49465, a move above could see prices testing 49789.

Gold yesterday settled down by 0.62% at 49140 as a broader market sell-off weighed on the metal along with a firm dollar, while hopes for further stimulus from the U.S. limited the downside. U.S. President Joe Biden has proposed a $1.9 trillion coronavirus relief plan, though some Republicans have expressed concerns over the amount.

U.S. manufacturing activity surged to its highest level in nearly 14 years in early January, but bottlenecks in the supply chain caused by the COVID-19 pandemic are driving up prices and signaling a rise in inflation in the months ahead.

Other data showed an unexpected increase in sales of previously owned homes in December. Manufacturing and the housing market are helping to anchor the economy, which is being battered by a wave of coronavirus infections.

But the pandemic is causing labor shortages at construction sites and factories, which could erode some of the strength in the manufacturing and housing sectors. Demand for physical gold picked up as the approaching Chinese New Year encouraged buyers in China and Singapore, with dealers expecting more purchases in coming weeks.

Chinese dealers charged $0.50-$4 an ounce over benchmark spot gold prices, unchanged from last week when they added a premium having been forced to offer heavy discounts for much of 2020 as the pandemic squeezed retail demand.

Trading Ideas:
--Gold trading range for the day is 48361-49789.
--Gold prices fell as a broader market sell-off weighed on the metal along with a firm dollar, while hopes for further stimulus from the U.S. limited the downside.
--U.S. President Joe Biden has proposed a $1.9 trillion coronavirus relief plan, though some Republicans have expressed concerns over the amount.
--U.S. manufacturing activity surged to its highest level in nearly 14 years in early January

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 2 14200.00
Ghee 20 39700.00
Coconut Oil 1 22800.00
Arecanut 39 41950.00

More