Gold MCX Alert – Gold Strong Resistance 31820 – Neal Bhai Reports -Gold prices have stalled the upside since the past month after the market speculators trimmed the bets of interest rate cuts this year. The Fed’s slightly hawkish policy meeting last week pushed the dollar higher.
Fed Powell said that the current lower level of inflation seemed to be transitory meaning the policy timing and the direction of next interest rate move may be on the upside. Also, US jobs data further gives clues to a resilient US economy.
MCX Gold Strong Only Above 31820, Any Big Panic Buy
India, one of the largest consumer of gold in the world, is now considering on reducing its import duty on gold from 10 percent to 4 percent. Further, investors selling heavily in exchange traded funds and hedge funds have added shorts while rising equities and strong economic data are lifting the dollar, thus creating pressure on Gold prices.
MCX Gold Price and Tips – MCX Gold Silver Trading Tips Rocking High 31408 – Advance Buy Call Hit – Rona Mana Hai
Positive outcome of US-China trade deal could increase risk appetite towards other assets creating further pressure on safe havens like Gold.
With the stable US economy, possibility of no rate cuts in 2019 cannot be negated. We hence expect Comex Gold prices to correct and fall towards USD 1240/oz in the coming quarter of 2019.