MCX GOLD UPDATE
Gold on MCX settled up 1.94% at 31991 as tumbling global stock markets sent investors rushing to the safe-haven asset. Wall Street extended its slide to a sixth session on Thursday after European stocks slumped to a 21-month low, pointing to growing risk aversion across global markets. Meanwhile, U.S. President Donald Trump, for a second day, criticized the Federal Reserve, calling its interest rate increases a “ridiculous” policy that was making it more expensive for his administration to finance its growing deficits. The Fed increased rates last month for the third time this year and is widely expected to raise them again in December. Worries about the economic impact of the Sino-U.S. trade war, a spike in U.S. bond yields this week and caution ahead of earnings seasons have all been cited as potential reasons behind the selloff, the biggest market rout since February. U.S. President Donald Trump launched a second day of criticism against the Fed on Thursday, calling its interest rate increases a “ridiculous” policy that was making it more expensive for his administration to finance its escalating deficits. U.S. consumer prices rose less than expected in September, held back by a slower increase in the cost of rent and falling energy prices, as underlying inflation pressures appeared to cool slightly. Investors searching for perpetrators and victims in this week’s U.S. stock market selloff pointed to a familiar source: number-crunching fund managers and machines. Technically market is under fresh buying as market has witnessed gain in open interest by 16.69% to settled at 14759 while prices up 610 rupees, now Gold is getting support at 31610 and below same could see a test of 31229 level, And resistance is now likely to be seen at 32193, a move above could see prices testing 32395.
BUY GOLD DEC 2018 @ 31750 SL 31600 TGT 31900-32100.MCX
MCX SILVER UPDATE
Silver on MCX settled up 1.05% at 38889 as tumbling stock markets on fears over rising bond yields and rates drove investors toward safe havens. Slowing global growth and trade tensions also helped return the yellow metal return to above $1,200 an ounce, a perch that has become a gold standard in itself for bullion in recent weeks, proving its standing as a strong hedge to fiat currencies. China’s latest attempts at restricting outward investment by its residents show just how nervous policymakers in the world’s second largest economy are about possible capital flight spurred by a broadening Sino-U.S. trade war. International Monetary Fund Managing Director Christine Lagarde warned countries against engaging in trade and currency wars that hurt global growth and imperil “innocent bystanders.” US consumer prices rose less than expected in September, held back by a slower increase in rent and falling energy prices, as underlying inflation pressures appeared to cool. The consumer price index (CPI) increased 0.1% last month after rising 0.2% in August. In the 12 months through September, the CPI increased 2.3%, slowing from August's 2.7% advance. The number of Americans filing for unemployment benefits unexpectedly rose last week but remained near a 49-year low, and the increase appeared unlikely to refuted the view that the US labour market remains strong. Some data to monitor today include Germany’s consumer prices in September, and US import prices in September and consumer confidence in October. Technically market is under short covering as market has witnessed drop in open interest by -9.22% to settled at 22829 while prices up 404 rupees, now Silver is getting support at 38522 and below same could see a test of 38156 level, And resistance is now likely to be seen at 39147, a move above could see prices testing 39406.
BUY SILVER DEC 2018 @ 38750 SL 38500 TGT 38990-39200.MCX.
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