Gold Silver Reports — Technically Gold market is getting support Key 28820 and below same could see a test of 27704 level, And resistance key is now likely to be seen at 28170, a move above could see prices testing 28260.
Gold MCX settled down -0.03% at 28107 but bounced off from the session lows after both the dollar and US 10-Year eased, following the release of downbeat economic data, fueling concerns about the pace of US economic growth.
As expected, policy members are leaning toward starting their balance sheet reduction plan in September, likely followed by one more rate hike at the end of the year.
As Inflation on a 12-month basis was expected to remain somewhat below 2 percent in the near term, but almost all members expected it to stabilize around 2% over the medium term. In other economic news, new orders for US manufactured goods fell by more than expected in the month of May, according to a report released by the Commerce Department on Wednesday.
Also Factory orders slumped by 0.8 percent to $464.9 billion in May after falling by a revised 0.3% in April. Gold prices also found support after North Korea successfully test-launched an intercontinental ballistic missile, claiming a major advance in its attempt to threaten the U.S. with a nuclear-tipped weapon.
And the U.S. said it is ready to act accordingly, if provoked. Meanwhile the World Gold Council issued a report in June highlighting the potential impact of the GST on India’s gold demand.
It believes that while GST might have a negative impact in the short term as the industry goes through a period of adjustment, the net impact in the long term is likely to be positive. It believes that GST should eliminate double taxation and improve the efficiency in supply chains. WGC expects India’s demand for gold to be 650–750 tons in 2017 and rise to 850–950 tons by 2020. — Neal Bhai Reports
