Neal Bhai Reports — MCX Gold Support at 29610, Target 29930–30030 — Gold prices ended with small gains lifted by steady flows into exchange-traded funds and a dip in the dollar after touching seven-month highs.
However pressure seen as Friday’s upbeat U.S. data kept the U.S. dollar at a seven-month peak against other major currencies. A stronger U.S. dollar usually weighs on gold, as it dampens the metal’s appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
The upbeat data added to expectations for an upcoming U.S. rate hike after the minutes of the Federal Reserve’s September policy meeting showed last week that several voting members believed a rate hike would be warranted “relatively soon” if the U.S. economy continued to strengthen. Demand for gold from top consumer China will remain strong at around 900-1,000 tonnes next year, near 2015 levels, although a weaker appetite for jewellery and slowing economy could curb purchases, an official of the World Gold Council said.
Continued firm demand from China should help underpin global benchmark gold prices that have come off two-year highs as expectations of a U.S. interest rate hike by year-end strengthened the dollar. But the precious metal remains up 18 percent for 2016, following a three-year decline. Hedge funds and money managers again reduced their net long positions in COMEX gold and silver contracts in the week to Oct. 11, U.S. Commodity Futures Trading Commission data showed. Technically market is under short covering as market has witnessed drop in open interest by -5.33% to settled at 7796 while prices up 49 rupee, now Gold is getting support at 29610 and below same could see a test of 29546 level, and resistance is now likely to be seen at 29760, a move above could see prices testing 29930 — 30030. — Gold Silver Reports