Gold Up on Short Covering

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Gold Up on Short Covering

Gold Silver Reports — Gold on MCX settled up 0.83% at 29262 as the dollar gave back some of its recent gains, but caution ahead of the Federal Reserve policy meeting later this week curbed its advance.

US families signed fewer deals to purchase new single-family homes early this spring, as sales continued to crawl down from post-recession highs in December. Sales of new one-unit homes fell 1.5% to an annualized rate of 511,000 units in March, short of the 520,000 figure expected by markets, fresh figures from the Department of Commerce showed.

The Fed is not expected to raise interest rates at this week’s meeting but markets will be looking for the U.S. central bank’s take on the global economy and its monetary policy outlook. Gold has gained about 16 percent this year on speculation that the Fed may not be able to raise rates this year on concerns over the Chinese economy and volatility in global markets. Data on Friday showed hedge funds and money managers raised their bullish position in COMEX silver contracts to a record high in the week to April 19, and net long positions in gold to the highest in 3-1/2 years.

Gold imports declined by about 8 per cent to $31.72 billion in 2015-16 due to weak global prices and are expected to keep a lid on the country’s current account deficit. In March, the imports dipped for the second consecutive month in March. It fell by 80.48 per cent to $972.96 million.

Technically market is under short covering as market has witnessed drop in open interest by -2.77% to settled at 8331, now Gold is getting support at 29114 and below same could see a test of 28967 level, and resistance is now likely to be seen at 29324, a move above could see prices testing 29534. — Neal Bhai Reports