FREE GOLD TIPS : 03.01.2017
Gold on MCX settled up 0.46% at 27570 in thin holiday mood trade despite pressure from a strong dollar. A drop in the U.S. dollar index prompted good short covering in the futures market and some bargain hunting in the cash market. However, the safe haven asset is down nearly one percent in December, and about 12 percent this quarter. While the precious metal has always been hoarded in times of trouble, a bevy of political and economic surprises in 2016 sparked a surge in buying that sent bullion to the first annual gain in four years. There are signs inflation is ticking higher, with price gains potentially supportive of bullion as a hedge. The U.S. consumer price index rose 1.7 percent last month as energy costs climbed, matching expectations to post the biggest year-over-year advance since October 2014. Still, investors continue to shed holdings in bullion-backed exchange-traded funds, with assets down 1.1 metric tons to 1,778 tons, the lowest since May, according to data. Global holdings have dropped as the Fed raised rates by a quarter-point on Dec. 14 for only the second hike since the central bank cut borrowing costs to near-zero in 2008. Policy makers have signaled three increases may be warranted in 2017, according to the latest quarterly projection. Technically market is under fresh buying as market has witnessed gain in open interest by 3.36% to settled at 6758 while prices up 125 rupee, now Gold is getting support at 27448 and below same could see a test of 27325 level, And resistance is now likely to be seen at 27647, a move above could see prices testing 27723.
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Gold on MCX settled up 0.46% at 27570 in thin holiday mood trade despite pressure from a strong dollar. A drop in the U.S. dollar index prompted good short covering in the futures market and some bargain hunting in the cash market. However, the safe haven asset is down nearly one percent in December, and about 12 percent this quarter. While the precious metal has always been hoarded in times of trouble, a bevy of political and economic surprises in 2016 sparked a surge in buying that sent bullion to the first annual gain in four years. There are signs inflation is ticking higher, with price gains potentially supportive of bullion as a hedge. The U.S. consumer price index rose 1.7 percent last month as energy costs climbed, matching expectations to post the biggest year-over-year advance since October 2014. Still, investors continue to shed holdings in bullion-backed exchange-traded funds, with assets down 1.1 metric tons to 1,778 tons, the lowest since May, according to data. Global holdings have dropped as the Fed raised rates by a quarter-point on Dec. 14 for only the second hike since the central bank cut borrowing costs to near-zero in 2008. Policy makers have signaled three increases may be warranted in 2017, according to the latest quarterly projection. Technically market is under fresh buying as market has witnessed gain in open interest by 3.36% to settled at 6758 while prices up 125 rupee, now Gold is getting support at 27448 and below same could see a test of 27325 level, And resistance is now likely to be seen at 27647, a move above could see prices testing 27723.
