Gold MCX Trading Level 28380-29080

Gold MCX Trading Level 28380-29080

Gold Silver Reports — Gold on MCX settled down -0.40% at 28646 with little reaction to dovish Federal Reserve minutes.

♦ While sentiments improved after minutes from the Fed’s last policy meeting showed caution over higher US interest rates, but the metal’s gains were capped by strength in global equities. Gold slid as global equity markets posted solid gains, aided by a climb in oil prices and a surge in healthcare stocks. Stronger equities dent the safe-haven appeal of gold.

♦ Also weakness in the dollar supported gold. The greenback wallowed close to a 17-month low against the yen on Thursday. Meanwhile minutes from the Fed’s March 15-16 policy-meeting released on Wednesday showed that policymakers debated whether an interest rate hike would be needed in April though a consensus emerged that risks from a global economic slowdown warranted a cautious approach.

♦ After the minutes, traders added slightly to bets that the Fed will raise rates earlier than December, the timing that had been expected before the release.

♦ Gold posted its biggest quarterly rise in nearly 30 years in the first three months of 2016 as expectations for rate rises faded. Meanwhile Holdings of the world’s largest gold-backed etf rose 0.51 percent to 819.60 tonnes on Wednesday, the first inflow in nearly two weeks. In India Jewellers in several parts of the country, still kept shutters down for the 36th day. After the government, in the Budget for 2016-17, had proposed one percent excise duty on jewellery without input credit or 12.5 percent with input tax credit on jewellery excluding silver other than those studded with diamonds and precious stones.

♦ Technically market is getting support at 28535 and below same could see a test of 28380 level, and resistance is now likely to be seen at 28803, a move above could see prices testing 29080. — Neal Bhai Reports

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