MCX Gold Short Covering Rally, Support Level @ 31460

Gold on MCX live settled up 0.37% @ 31563 after U.S. President Donald Trump threatened to raise tariffs on Chinese goods, escalating Sino-U.S. trade tensions, which prompted risk-off sentiment and boosted safe-haven assets.

MCX Live Gold support key @ ₹31460 and next level is 31270 level, And resistance key is now likely to be seen @ ₹31680, a move above could see prices testing @ ₹31820.

Technically Gold market is under short covering as market has witnessed drop in open interest by 10.86% to settled at 9771 while prices up 116 rupees.

Last week, the mood among gold investors turned gloomy, pushing the metal to a four-month low after the U.S. Federal Reserve Chairman Jerome Powell dashed hopes of a rate cut this year.

Physical demand for the metal had also been robust last week with India and Singapore leveraging the correction in prices ahead of a key gold-buying festival.

United States President Donald Trump announced he would hike tariffs on $200 billion worth of Chinese goods this week. He also said he would target a further $325 billion of Chinese goods with 25 percent tariffs “shortly”.

This is a considerable shift in stance from the past week where he heralded that trade talks between the two countries were going “pretty well”. China now considers cancelling trade negotiations with the United States after Trump’s tariff-hike threats.

In the previous session, holdings of SPDR Gold Trust, the world’s largest gold backed exchange, dropped 0.63 percent to 740.82 tonnes, its lowest since Oct. 11.

However, the metal truncated its weekly percentage decline on Friday instigated by investors covering their short positions and a fall in the dollar after U.S. jobs data showed wage gains did not accelerate as expected.

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Neal Bhai