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Published on 14/02/2018 9:52:06 AM | Source: Kedia Commodity Ltd

Buy Gold Apr 2018 @ 30100 SL 30000 Tgt 30240-30360 - Kedia Commodity

Posted in Commodities Reports| #Kedia Commodity Ltd #Commodity Tips

MCX GOLD UPDATE

Gold on MCX settled up 0.22% at 30218 as the U.S. dollar slipped and markets anticipated the release of impending U.S. inflation. Last week, the dollar was supported by increased safe haven demand from investors amid dramatic moves in the equities and bond markets. British inflation unexpectedly held close to its highest level in nearly six years in January, highlighting the challenge facing the Bank of England and reinforcing expectations of a rise in interest rates in May.

Economic growth in the U.S., Europe and Asia has stoked inflation fears in recent weeks, pushing up bond yields and undermining stock prices, and Wednesday's U.S. inflation data may help determine whether the correction in equities markets is over. Inflation is sometimes regarded as gold-positive, because bullion is seen as a safe haven when price pressures are rising, but expectations that the U.S. Federal Reserve will lift interest rates to fight inflation make the non-yielding metal less attractive.

U.S. inflation data for January is due on Wednesday and the U.S. Federal Reserve next meets on March 20-21. SPDR Gold Trust said its holdings rose 0.36 percent to 823.66 tonnes on Tuesday from 820.71 tonnes. Russia produced 306.9 tonnes of gold in 2017, up from 288.5 tonnes in 2016, the finance ministry said.

Technically market is under short covering as market has witnessed drop in open interest by -1.44% to settled at 7397 while prices up 66 rupees, now Gold is getting support at 30130 and below same could see a test of 30042 level, And resistance is now likely to be seen at 30278, a move above could see prices testing 30338.

BUY GOLD APR 2018 @ 30100 SL 30000 TGT 30240-30360.MCX

MCX SILVER UPDATE

Silver remained supported as caution ahead of this week's U.S. inflation data weighed on demand for the dollar. All eyes focused on US consumer price data ahead for fresh cues on the likely path of interest rate hikes by the Fed. Prices hovered above breakeven supported by ongoing dollar weakness ahead of an inflation report which could strengthen the Federal Reserve’s case for more aggressive monetary policy tightening.

he dollar fell for a second straight day in row pressured by large gains in both the euro and yen, helping prices remain steady a day ahead of an inflation report which could offer markets with fresh direction. Last week, the dollar was supported by increased safe haven demand from investors amid dramatic moves in the equities and bond markets.

British inflation unexpectedly held close to its highest level in nearly six years in January, highlighting the challenge facing the Bank of England and reinforcing expectations of a rise in interest rates in May. Economic growth in the U.S., Europe and Asia has stoked inflation fears in recent weeks, pushing up bond yields and undermining stock prices, and Wednesday's U.S. inflation data may help determine whether the correction in equities markets is over.

Market turbulence has been triggered by speculation that Fed may raise interest rates at a faster rate than had been expected amid signs of a pickup in inflation. Technically market is under fresh selling as market has witnessed gain in open interest by 1.04% to settled at 18922 while prices down -23 rupees, now Silver is getting support at 38011 and below same could see a test of 37776 level, And resistance is now likely to be seen at 38414, a move above could see prices testing 38582.

BUY SILVER MAR 2018 @ 38000 SL 37800 TGT 38320-38450.MCX

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