Gold Silver Reports — Technically Gold market is getting support at 27910 and below same could see a test of 27820 level, And resistance is now likely to be seen at 28120, a move above could see prices testing 28224.
Gold MCX settled up 0.09% at 27996 slightly higher in yesterday’s session while unable to sustain early gains amid muted reaction to President Trump’s firing of FBI Director James Comey.
Support was seen as investors’ appetite for risk eased, after Trump unexpectedly sacked Comey while geopolitical jitters over North Korea returned as gold futures bounced off an eight-week low.
Meanwhile the New York Times reported that days before he was fired, Comey asked the Justice Department for additional resources for the bureau’s investigation into Russia’s interference in the presidential election.
Meanwhile, geopolitical jitters underpinned the move higher in gold prices, after North Korean ambassador to the UK said the country will proceed with its sixth nuclear test. Despite the bounce in gold futures, overall sentiment remained fairly negative as it is widely expected that the Federal Reserve will hike interest rates in June.
Earlier this week, several Fed officials signalled that the U.S. central bank would continue on its stated interest rate path of three total rate hikes for 2017. Kaplan said that three total rate hikes in 2017, is the “baseline scenario” but insisted that the Federal Reserve would continue to monitor changes in economic activity, which could pave the way for a more hawkish or dovish approach to future rate hikes.
According to market expectation traders are expecting the Federal Reserve to hike interest rates in June, compared to 63% in the previous week. — Neal Bhai Reports