MCX GOLD UPDATE
Gold on MCX settled up 0.15% at 30377 as prices saw some safe-haven demand due to increasing concerns about turmoil in the Trump administration. U.S. Secretary of State Rex Tillerson was fired by President Trump prompted some fresh safe-haven in gold and silver markets.
The firing of a Trump cabinet official comes on the heels of Trump’s chief economic advisor quitting last week. Other lower-level Trump administration officials have also hit the exit doors recently. Now more than ever there is the perception that the Trump presidency is in chaos.
U.S. consumer prices cooled in February amid a decline in gasoline prices and a moderation in the cost of rental accommodation, the latest indication that an anticipated pickup in inflation probably will be only gradual. Trump is seeking to impose tariffs on up to $60 billion of Chinese imports and will target the technology and telecommunications sectors, two people who had discussed the issue with the Trump administration said.
Investors have moved to pricing in a March 2019 rate rise by the European Central Bank, whose dovish, go-slow message has persuaded markets to wipe out bets on an earlier move. Gold was sold at a discount in India as demand remained subdued for a fourth straight week while buying in the rest of Asia picked up as prices fell for a third consecutive week.
India's gold imports in February dropped a quarter from a year ago to 63 tonnes as higher prices curtailed demand in the world's second-biggest consumer of bullion. Technically now Gold is getting support at 30273 and below same could see a test of 30169 level, And resistance is now likely to be seen at 30445, a move above could see prices testing 30513.
BUY GOLD APR 2018 @ 30300 SL 30180 TGT 30440-30560.MCX
MCX SILVER UPDATE
Silver on MCX settled up 0.17% at 38821 amid an uptick in safe-haven demand on concerns about turmoil in the Trump administration after Secretary of State Rex Tillerson was fired. President Donald Trump fired Secretary of State Rex Tillerson, after a falling out on how best to tackle the Iran nuclear deal. Trump hired Central Intelligence Agency Director Mike Pompeo as Tillerson’s replacement.
Also adding to positive sentiment on prices was an inflation report that while in-line with forecasts did little to lift the prospect of a fourth rate hike being added to the Federal Reserve's rate-hike projections or so-called dot plot. US data showed consumer prices slowed down to 0.2% as expected from 0.5% in January, while core prices slowed down as well to 0.2% from 0.3% in January.
On a yearly basis, consumer prices accelerated to 2.2% as expected from 2.1% in January, while core prices steadied at 1.8% in line with expectations. New Federal Reserve Chair Jerome Powell said in his Congress testimony that hiking interest rates four times this year would be considered a "gradual pace", bolstering expectations of a March rate hike.
The economy created 313 thousand new jobs last month, while wages slowed down, confirming Powell's expectations that labor would strengthen further before improvements in wages. The Federal Open Market Committee will meet on March 20-21 under Powell for the first time, with policymakers expected to release three-year forecasts for inflation, growth, unemployment, and interest rates.
Technically market is under short covering as market has witnessed drop in open interest by -0.48% to settled at 19415 while prices up 66 rupees, now Silver is getting support at 38645 and below same could see a test of 38470 level, And resistance is now likely to be seen at 38970, a move above could see prices testing 39120.
BUY SILVER MAY 2018 @ 38700 SL 38500 TGT 38950-39150.MCX
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