Support seen at 30850 for MCX Gold
Commodity Online | September 21 2016
UPDATED 10:22:18 IST

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Gold on MCX settled up 0.07% at 30924 barely budged in yesterday session as the Federal Reserve's interest rate decision loomed. Volumes remain low as investors are holding fire of central bank meetings in the US and Japan this week. The US Federal Open Market Committee will meet later on Tuesday and conclude its monetary policy meeting on Wednesday. While most market participants – only around 15 percent, according to the CME Group Fedwatch tool, compared with 12 percent last Friday – still do not anticipate the Fed raising rates in September, 60.1 percent now see a move in December. While in Japan, the BoJ is expected to announce on Wednesday another round of stimulus to prop up the weak domestic economy.

Tonight investors will listen closely to Fed Chair Janet Yellen's speech at the end of the meeting on Wednesday for any hint that the central bank could raise rates before the end of the year. A range of mixed economic figures and conflicting remarks by key Fed policymakers have kept investors guessing over the timing of the next U.S. rate increase. From physical market news SPDR Gold Trust, said its holdings fell 0.41 percent to 938.75 tonnes on Tuesday. While Russia's gold reserves increased to 49.1 million troy ounces as of the start of September from 48.4 million ounces a month earlier, the central bank said on Tuesday.

Also Swiss gold imports from Hong Kong hit their highest since records began in 2012 last month, data from the Swiss customs bureau showed on Tuesday, while its exports to the region slipped to a four-month low. Technically market is getting support at 30850 and below same could see a test of 30776 level, and resistance is now likely to be seen at 31024, a move above could see prices testing 31124.

Trading Ideas:
--Gold trading range for the day is 30776-31124.
--Gold steadied ahead of a two-day U.S. Federal Reserve meeting that investors are betting will leave interest rates unchanged.
--Investors will listen closely to Fed Chair Janet Yellen's speech for any hint that the central bank could raise rates before the end of the year.
--SPDR gold trust holdings dropped by 0.41% i.e. 3.86 tonnes to 938.75 tonnes from 942.61 tonnes.

Courtesy: Kedia Commodities