MCX GOLD UPDATE
Gold on MCX settled up 0.58% at 29324 as the dollar tumbled to a six-week low versus the Japanese yen and slid against the euro, lifting assets priced in the US currency and offsetting a rise in global yields. The dollar fell as much as 1.2 percent against the yen after the Bank of Japan's move to trim its long-dated government bond purchases earlier this week, putting the US currency on track for its biggest twoday drop in nearly eight months.
The BoJ move also lifted bond yields across the world, generally a negative factor for gold as it increases the opportunity cost of holding non-interest bearing bullion. However, the impact of the dollar's fall outweighed that factor. Meanwhile Holdings of SPDR Gold Trust fell 0.35 percent to 828.96 tonnes on Wednesday from Tuesday.
While from India, India's gold imports surged 67 percent in 2017 from the previous year to 855 tonnes as jewellers replenished inventory amid a rebound in retail demand, provisional data from precious metals consultancy GFMS showed. The rebound in purchases by India, could support global prices, which are already near their highest levels in three months.
Now Market participants are focusing on the release of U.S. inflation data due on Friday, for clues on the potential pace of rate hikes by the Federal Reserve. The greenback had initially strengthened after San Francisco Fed President John Williams said on Saturday that the Fed should raise interest rates three times this year given that economy will benefit from tax cuts
Technically market is getting support at 29154 and below same could see a test of 28983 level, And resistance is now likely to be seen at 29463, a move above could see prices testing 29601.
BUY GOLD FEB 2018 @ 29200 SL 29050 TGT 29380-29480.MCX
MCX SILVER UPDATE
Silver on MCX settled up 0.38% at 38992 tracking firmness from Comex Silver which yesterday settled up by 0.4 percent at $17.01 an ounce, after earlier drifting to $16.86, its lowest since Dec. 29 as the dollar swooned after a report that Chinese officials had recommended slowing or halting purchases of U.S. Treasury securities.
The dollar, already under pressure versus the Japanese yen after the Bank of Japan moved to trim its long-dated government bond purchases this week, was on track to post its biggest single-day drop against the yen in seven weeks. Earlier data from US data showed import prices slowed down to 0.1% from 0.8% in November, missing expectations of 0.4%, while wholesale inventories rose 0.8% in November, compared to a 0.5% dip in October.
While the World Bank released its global forecasts expecting the strongest growth rate since the financial crisis, with global GDP expected to grow 3.1% in 2018, up from 3% in 2017. Market participants were now focusing on the release of U.S. inflation data due on Friday, for clues on the potential pace of rate hikes by the Federal Reserve.
The greenback had initially strengthened after San Francisco Fed President John Williams said on Saturday that the Fed should raise interest rates three times this year given that economy will benefit from tax cuts.
The comments came a day after Cleveland Fed President Loretta Mester said she expects about four interest rate hikes this year, thanks to solid U.S. economic growth and low unemployment. Technically now Silver is getting support at 38722 and below same could see a test of 38453 level, And resistance is now likely to be seen at 39280, a move above could see prices testing 39569.
BUY SILVER MAR 2018 @ 38800 SL 38600 TGT 39000-39250.MCX
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