Gold Ready For Fresh Buying, Open Interest Up

Gold Ready For Fresh Buying, Open Interest Up
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Neal Bhai Reports ~ Gold settled up 0.37% at 27524 as a mixed U.S. jobs report prompted investors to reassess the outlook for U.S. interest rates this year, putting bullion on track for its strongest weekly performance in more than a year. U.S. employment gains slowed more than expected in January as the boost to hiring from unseasonably mild weather faded, but rising wages and an unemployment rate at an 8 year low suggested the labormarket recovery remains firm.

A shaky global economy has lifted buyinginterest in gold, making it among the best performing assets since the start of 2016 with a gain of nearly 10 percent. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose to 22.3 million ounces on Thursday, the highest since late October. Most physical gold buyers in Asia stayed off the market as the price surged to its highest since October, widening discounts in India and leaving demand largely lethargic in China ahead of next week’s Lunar New Year holiday. The week just before the Lunar New Year tends to be a slow period for gold demand in China, with buyers usually securing supplies weeks before the country’s biggest festiveseason.

Gold premiums in Shanghai were modest at $1.50-$2 an ounce earlier in the week before flipping to a small discount. In India, tepid demand forced dealers to offer discounts of up to $10 an ounce to the global spot, against a discount of $6 last week. Technicallymarket is under fresh buying as market has witnessed gain in open interest by 1.67% to settled at 9937, now Gold is getting support at 27326 and below same could see a test of 27127 level, and resistance is now likely to be seen at 27650, a move above could see prices testing 27885.

Trading Range:

# Gold trading range for the day is 27080-27885

# Gold prices gained as a mixed U.S. jobs report prompted investors to reassess the outlook for U.S. interest rates this year.

# U.S. employment gains slowed more than expected in January as the boost to hiring from unseasonably mild weather faded.

# SPDR gold trust holdings gained by 0.70% i.e. 4.83 tonnes to 698.46 tonnes from 693.63 tonnes. ~ Neal Bhai Reports

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