Gold Silver Reports – MCX Gold Expected Trading Zone Between 29510—29860, Sell on Rise — Technically Gold market is getting support at 29510 and below same could see a test of 29330 levels and resistance is now likely to be seen at 29720, a move above could see prices testing 29860.
Gold on MCX settled down 0.22% at 29757 pulled back from 4-month highs despite US currency fell once more. The price of gold has risen by 8 percent since mid-December, helped by a weakening of the dollar to a three-year low against a basket of major currencies.
But the euro gave up its three-year high against the dollar after comments by ECB officials suggested they may be concerned by the strength of the European single currency.
But prices could move higher if Republicans and Democrats in the United States fail to pass a spending bill by Friday to avoid a possible government shutdown. Also a collapse in the value of cryptocurrency bitcoin could also drive demand.
Investors who saw bitcoin as an alternative to gold could change their minds now and buy more gold again. Meanwhile recently we have seen a steep drop in the dollar which has been one of the key factors behind gold’s recent rally, which has seen prices for the metal rise around 8% from December lows.
While Monetary tightening by central banks in Europe and China will likely keep the dollar on the back foot and provide a boost to gold in the months ahead. Also signs that the Federal Reserve may raise rates less aggressively than expected can take prices to $1380 a troy ounce this year.
From here, the spotlight turns to a monetary policy announcement from the Bank of Canada. Traders seem convinced that a rate hike is in store, pricing in its likelihood at close to 90 percent. – Neal Bhai Reports