Gold trading range for the day is 31048-31380.
GOLD TREND : SELL ZONE
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Gold dropped as hawkish comments on U.S. interest rates from a top Federal Reserve
official helped lift the U.S. dollar.
Investors remained uncertain on the outlook for rates, however, with Fed officials recently
taking a more hawkish tone.
SPDR gold trust holdings dropped by 1.12% i.e. 10.68 tonnes to 939.94 tonnes from 950.62 tonnes.
Gold prices dropped as hawkish comments on U.S. interest rates from a top Federal Reserve official helped lift the U.S. dollar, and as buyers continued to cash in on week's price rally.
Soft jobs and services data this week have dented expectations that ultra-low interest rates, a key support for non-yielding gold, will rise this year.
But investors remained uncertain on the outlook for rates, however, with Fed officials recently taking a more hawkish tone.
Growing speculation that the Fed would stand pat on interest rates after hiking for the first time in nearly a decade in December have helped push gold 26 percent higher this year. Expectations for further policy divergence between the United States and the euro zone were dampened after the European Central Bank held off signalling a move towards further policy easing at a meeting. Gold demand in Asia remained subdued
this week as higher prices kept buyers at bay, but upcoming festivals following a good monsoon in India would likely stimulate appetite for the yellow metal. Two-thirds of demand in India, the world's second-biggest gold consumer, comes from its rural areas and villages, where jewellery is a traditional form of investment. Discounts over official domestic prices in India doubled this week to $32 an ounce as compared to last week on the back of sluggish retail buying. Technically market is under short covering as market has witnessed drop in open interest by -2.49% to settled at 8175 while prices up 14 rupee, now Gold is getting support at 31132 and below same could see a test of 31048 level, And resistance is now likely to be seen at 31298, a move above could see prices testing 31380.
GOLD TREND : SELL ZONE
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Gold dropped as hawkish comments on U.S. interest rates from a top Federal Reserve
official helped lift the U.S. dollar.
Investors remained uncertain on the outlook for rates, however, with Fed officials recently
taking a more hawkish tone.
SPDR gold trust holdings dropped by 1.12% i.e. 10.68 tonnes to 939.94 tonnes from 950.62 tonnes.
Gold prices dropped as hawkish comments on U.S. interest rates from a top Federal Reserve official helped lift the U.S. dollar, and as buyers continued to cash in on week's price rally.
Soft jobs and services data this week have dented expectations that ultra-low interest rates, a key support for non-yielding gold, will rise this year.
But investors remained uncertain on the outlook for rates, however, with Fed officials recently taking a more hawkish tone.
Growing speculation that the Fed would stand pat on interest rates after hiking for the first time in nearly a decade in December have helped push gold 26 percent higher this year. Expectations for further policy divergence between the United States and the euro zone were dampened after the European Central Bank held off signalling a move towards further policy easing at a meeting. Gold demand in Asia remained subdued
this week as higher prices kept buyers at bay, but upcoming festivals following a good monsoon in India would likely stimulate appetite for the yellow metal. Two-thirds of demand in India, the world's second-biggest gold consumer, comes from its rural areas and villages, where jewellery is a traditional form of investment. Discounts over official domestic prices in India doubled this week to $32 an ounce as compared to last week on the back of sluggish retail buying. Technically market is under short covering as market has witnessed drop in open interest by -2.49% to settled at 8175 while prices up 14 rupee, now Gold is getting support at 31132 and below same could see a test of 31048 level, And resistance is now likely to be seen at 31298, a move above could see prices testing 31380.
