Gold MCX Short Covering Rally Resistance Key at 28164

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Gold Silver Updates

Gold Sure short tipsGold Silver Reports — Technically gold market is under short covering as market has witnessed drop in open interest by 2.47% to settled at 6593 while prices up 8 rupees.

MCX Gold is getting support at 27900 and below same could see a test of 27760 level, And resistance is now likely to be seen at 28164, a move above could see prices testing 28330.

Gold traded in range amid political turmoil in Washington, after President Trump unexpectedly fired FBI chief James Comey. However gains were capped by better than expected producer inflation and labor market data. Fed’s Dudley said the U.S. central bank will normalize its balance sheet in a “very careful way”, while leaving “sufficient” excess reserves in the financial system.

New applications for U.S. jobless benefits unexpectedly fell last week, while producer prices rebounded strongly in April, pointing to a tightening labour market and rising inflation that could spur the Federal Reserve to raise interest rates in June.

President Donald Trump ran into resistance for calling ousted FBI chief James Comey a “showboat,” an attack that was swiftly contradicted by top U.S. senators and the acting FBI leader, who pledged that an investigation into possible Trump campaign ties to Russia would proceed with vigor.

Gold is highly sensitive to rising U.S. rates, which increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.

Finance chiefs from the G7 begin a two-day meeting in Italy on Friday, with Europe, Japan and Canada hoping to come away with a clearer picture of U.S. President Donald Trump’s direction on important policies that he has yet to spell out. — Neal Bhai Reports

Gold MCX Short Covering Rally Resistance Key at 28164 | Gold Silver Reports