FREE MCX GOLD NEWS : 04.01.2017
Gold on MCX settled up 0.75% at 27778 the highest level in three weeks reversing losses from a rising U.S. dollar amid renewed investor interest in the new year. In last 10 days metal spent the holidays in a narrow trading range and ended the year up about 8% despite a sharp selloff in the final three months of 2016. Yesterday trading started with some weakness and prices came under pressure from a stronger dollar and rising stock markets in the U.S., but recovered as the dollar came off its highs. Now traders are eyeing on the minutes from the Fed’s December meeting which will be released on Wednesday, possibly providing further clues on the pace of rate increases expected this year. Following that meeting, Fed officials expected rates to rise three times over the course of 2017. Since gold doesn’t pay its holders interest, it tends to become less attractive compared to yieldbearing assets like Treasury’s when borrowing costs rise. Meanwhile demand from China and India is also strengthening after prices fallen after a year of muted buying from the two large gold consumers. Gold could also get a short-term boost when China celebrates the Lunar New Year later this month, which typically brings a pickup in demand for physical gold. While SPDR Gold Trust said its holdings fell 1.01 percent to 813.87 tonnes on Tuesday from 822.17 tonnes on Friday. In terms of ounces, holdings fell to 26,166,777.21 ounces from 26,433,584.87. Technically market is getting support at 27545 and below same could see a test of 27311 level, And resistance is now likely to be seen at 27918, a move above could see prices testing 28057.
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