Gold Silver Reports — Technically gold market is getting support Key at 28902 and below same could see a test of 28770 level, And resistance Key is now likely to be seen at 29155, a move above could see prices testing 29275.
Gold MCX settled up 0.3% at 29030 snapping a 5-session losing skid rose after downbeat US economic data boosted speculation the Federal Reserve will raise interest rates today but refrain from further tightening until year’s end.
Gold prices also got support from a near three-week low hit in the previous session, as Asian stocks fell on a report that U.S. President Donald Trump is being investigated for possible obstruction of justice. Trump is being investigated by special counsel Robert Mueller for possible obstruction of justice, the Washington Post reported on Wednesday, citing unidentified officials.
While yesterday the Fed raised interest rates on Wednesday for the second time in three months and said it would begin cutting its holdings of bonds and other securities this year, signaling its confidence in a growing U.S. economy and strengthening job market.
However, U.S. consumer prices unexpectedly fell in May and retail sales recorded their biggest drop in 16 months, suggesting a softening in domestic demand that could limit the Fed’s ability to continue raising interest rates this year.
Wall Street’s top banks brought forward their expectations for when they think the Fed will begin reducing its $4.5 trillion bond portfolio to as early September, and see balance sheet reduction as more of a priority than another interest rate rise. From physical side India’s demand outlook, after last year’s demonetization move, gold appetites are finally returning to India.
Gold imports in May surged to 103 tons, which is four times the imports recorded in the same month last year. Jewelers in India are most likely building up their gold inventories, fearing a higher GST rate in coming months. — Neal Bhai Reports
