Gold Silver Reports → Gold settled down -1.36% at 29386 on profit booking after European banking stocks recovered, inspiring a rally among global equities. But prices remained supported on weekly basis as global growth concerns, declining oil prices and uncertainty over additional U.S. rate hikes this year continued to support safe-haven demand. The yellow metal remained supported in recent sessions amid persistent fears over the health of the global economy and the euro zone financial sector. In the U.S., Federal Reserve Chair Janet Yellen reiterated to the Senate on Thursday comments made the previous day to Congress.
In testimony before a congressional committee on Wednesday, Yellen said there are good reasons to believe the U.S. will stay on a path of moderate growth that will allow the Fed to pursue “gradual” adjustments to monetary policy. But she also acknowledged risks facing the U.S. economy from tightening financial conditions driven by falling stock prices and uncertainty over China. As gold trades near its highest in a year on a wave of safe-haven buying, traditionally active buyers of physical gold in the major Asian markets have shown little interest so far.
Consumers in China and India tend to typically buy gold in jewellery form, swooping in to hunt bargains or if they are confident of a sustained rally. A lack of interest from China and India – which together account for about 45 percent of world gold demand – could put a dent on the metal’s biggest rally in years, though panic buying of gold coins and bars led by Western consumers could cushion the impact.
Technically now Gold is getting support at 29215 and below same could see a test of 28800 level, and resistance is now likely to be seen at 29700, a move above could see prices testing 30080. → Neal Bhai Reports
Trading Ideas ⊕
⇒ Gold trading range for the day is 28800-29700.
⇒ Gold settled down on profit booking after European banking stocks recovered, inspiring a rally among global equities.
⇒ Prices also seen under pressure as the dollar extended gains after better than expected U.S. retail sales data.
⇒ SPDR gold trust holdings dropped by 0.71% i.e. 5.06 tonnes to 710.95 tonnes from 716.01 tonnes.