Gold on MCX settled up 0.88%
Daily comments as on Tuesday, November 07, 2017
Gold on MCX settled up 0.88% at 29344 as geopolitical risks drove investors to safe-haven assets after the metal’s third-straight weekly decline. Saudi Arabia’s future king, Crown Prince Mohammed bin Salman, tightened his grip on power through an anti-corruption purge by arresting royals, ministers and investors including billionaire Alwaleed bin Talal who is one of the kingdom’s most prominent businessmen. The dollar dipped after its biggest weekly rise this year, while Germany’s benchmark bond yield held near two-month low as investors awaited clues on the European Central Bank’s asset purchase plans. U.S. 10-year yields also hit their weakest in two weeks. Gold has drifted lower over recent weeks, pulling back 2.5 percent from its mid-October peak as expectations for a Fed interest rate increase were shored up by upbeat U.S. data. U.S. President Donald Trump will step directly into the shadow of the North Korean nuclear standoff on Tuesday on a visit to South Korea in which his words alone could risk further inflaming tensions with North Korean leader Kim Jong Un. Hedge funds and money managers reduced their net long position in COMEX gold contracts for the seventh straight week, in the week to Oct. 31, U.S. Commodity Futures Trading Commission (CFTC) data showed. Demand for physical gold was lacklustre in top consumers India and China this week, while the lure of the metal remained stable in Singapore, but India’s peak wedding season is expected to usher in renewed interest for bullion in coming weeks. Technically market is under short covering as market has witnessed drop in open interest by -11.44% to settled at 5588, now Gold is getting support at 29178 and below same could see a test of 29012 level, And resistance is now likely to be seen at 29441, a move above could see prices testing 29538.
# Gold trading range for the day is 29012-29538.
# Gold prices rose as geopolitical risks drove investors to safe-haven assets after the metal’s third-straight weekly decline.
# U.S. job growth accelerated in October after hurricane-related disruptions in the prior month, but wages grew at their slowest annual pace in more than 1-1/2 year.
# Demand for physical gold was lacklustre in top consumers India and China last week