Mcx Gold fed futures technical chart has taken the formation of ” Rising channel ” pattern daily time frame. Last few session ended up bullish in trend along with some corrections inside the channel, where the market is expected to continue on bullish momentum.
Technically Gold market is under fresh buying as the market has witnessed gain in open interest by 10.34% to settle at 17684 while prices up 162 rupees.
Now MCX Gold is getting support at 32943 and below same could see a test of 32789 level, And resistance is now likely to be seen at 33234, a move above could see prices testing 33371.
Gold prices gained as the dollar weakened after the U.S. Federal Reserve paused its monetary tightening cycle. The Fed held U.S. interest rates steady but said it would be patient in lifting borrowing costs further this year as it pointed to rising uncertainty about the economic outlook.
Meanwhile, attention turned towards the U.S. and China high-level trade talks that began on Wednesday, aimed at digging out from their months-long trade war. Investors are worried that Washington’s criminal charges against Chinese company Huawei and its chief financial officer could hurt the talks.
A surge in gold purchases by central banks to the highest since 1967 helped push global demand for the metal up 4 percent last year, the World Gold Council (WGC) said. The world consumed 4,345.1 tonnes of gold in 2018, up from 4,159.9 tonnes in 2017, the WGC said in its latest quarterly demand trends report.
Driving the increase were central banks which bought 651.5 tonnes – 74 percent more than in 2017 and the second highest annual total on record – as countries including China and Poland joined Russia, Turkey and Kazakhstan in adding to their reserves, the WGC said.
Underscoring investor interest in gold, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, were at their highest since June. SPDR gold holdings have climbed 4.6 percent so far this month, the biggest monthly gain since September 2017.
Trading Ideas:
–Gold trading range for the day is 32789-33371.
–Gold prices gained as the dollar weakened after the U.S. Federal Reserve paused its monetary tightening cycle.
–The Fed held U.S. interest rates steady but said it would be patient in lifting borrowing costs further this year as it pointed to rising uncertainty about the economic outlook.
–China’s 2018 gold consumption rose by 5.73 percent year-on- year to 1,151.43 tonnes.
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