MCX GOLD UPDATE
Gold on MCX settled up 0.23% at 29390 tracking Comex Gold which rose to near a four-month high rose 0.20% to $1,322.00 an ounce as the dollar index dipped for the second straight session following earlier data from the US, the world's largest economy, and ahead of Federal Reserve Governor William Dudley's speech.
While yesterday the European Central Bank could consider a gradual shift in guidance from early 2018, the minutes of the ECB December meeting showed, as policymakers saw "some comfort" in wage dynamics despite ongoing concerns over subdued inflation. The hawkish tone of the minutes fuelled a surge in the euro, pressuring the dollar toward four-month lows, while weaker-than-forecast wholesale inflation for December deepened the dollar’s retreat supporting an uptick in gold prices.
From data point the Labor Department said Thursday its producer price index for final demand fell 0.1% last month after rising 0.2% in November. In the 12 months through December, the PPI rose 2.6, missing expectation for a 3% rise. The softer wholesale inflation data renewed inflation jitters, easing investor optimism for a more aggressive Federal Reserve stance on monetary policy as investors awaited a consumer inflation report due Friday.
from physical side gold holdings at the SPDR Trust, fell on Wednesday by 2.95 tonnes to 828.96 tonnes, the lowest since August 29, after holdings rose 3% in 2017, or 23.63 tonnes. Technically market is under fresh buying as market has witnessed gain in open interest by 1.78% to settled at 6337 while prices up 66 rupees, now Gold is getting support at 29320 and below same could see a test of 29250 level, And resistance is now likely to be seen at 29433, a move above could see prices testing 29476.
BUY GOLD FEB 2018 @ 29280 SL 29150 TGT 29400-29550.MCX
MCX SILVER UPDATE
Silver traded in range after the dollar dropped on hawkish ECB meeting minutes suggesting monetary policy tightening may soon follow. The European Central Bank signalled it could begin to wind down its 2.5 trillion euro ($3.01 trillion) stimulus program this year. The ECB should revisit its communication stance in early 2018, accounts of its December meeting showed, suggesting that policymakers could soon start preparing markets for the end of the bank's massive stimulus.
US data showed producer prices dipped 0.1% m/m in December, the first such decline since July, missing expectations of a 0.2% rise. US unemployment claims rose to 260 thousand in the week ending January 6 from 250K, the second weekly increase in a row. The overall disappointing data cut chances of a Federal Reserve rate hike in March, and the bets of three hikes this year similar to 2017.
Otherwise, White House economic adviser Gary Kohen said earlier that the stock market is not too high right now, and the tax cuts have begun to have an impact on the economy, with wages rising and optimism improving. 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.
Emerging economies will lead global growth, especially those relying on commodity exports, with the bank expecting a 4.5% growth rate for them in 2018 before settling at 4.7% in 2019 and 2020, while developed economies are projected to grow 2.2% in 2018, down from 2.3% in 2017. Technically now Silver is getting support at 38727 and below same could see a test of 38514 level, And resistance is now likely to be seen at 39092, a move above could see prices testing 39244.
BUY SILVER MAR 2018 @ 38900 SL 38650 TGT 39150-39400.MCX
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