Commodity Trading Tips for Gold by Kedia Commodity

Gold on MCX settled up 0.62% at 28803 amid safe haven demand for the precious metal. Support also seen for bullion as protectionist signals from President Donald Trump’s administration unsettled financial markets and weakened the dollar, spurring demand for the metal as a haven. Gold investors have focused on two main views since Trump’s election in November: one seeing him as a wild card upending policy on everything from trade to alliances, and the other betting that he’ll boost U. S. growth, equities and the dollar. The administration’s opening days have been marked by protests, disputes about what constitutes a fact and assertions from Trump that he’ll put “America first.” Also Investors have started buying gold through exchange-traded funds again. Holdings rose 0.9 metric ton on Friday to 1,776.7 tons. The fifth straight daily gain is the longest run since Nov. 3. After Trump’s win, assets dropped every week through to Jan. 13 as a rally in equities and the dollar curbed demand. Underscoring the bullish view, data from the U. S. Commodity Futures Trading Commission (CFTC) showed that speculators raised their net long positions in COMEX gold contracts for a second week in the week to Jan. 17. Now trader in the week ahead eyeing on the economic calendar is light but Trump's policy plans in his first days in office are likely to dominate headlines. Investors will also be awaiting a first look at fourth quarter growth from the U. S. on Friday and from the U. K. a day earlier. Technically market is under fresh buying as market has witnessed gain in open interest by 9.91% to settled at 7242 while prices up 178 rupee, now Gold is getting support at 28683 and below same could see a test of 28563 level, And resistance is now likely to be seen at 28890, a move above could see prices testing 28977.

Trading Ideas:

# Gold trading range for the day is 28563-28977.

# Gold gained as the U. S. dollar tumbled amid uncertainty around the economic policies of new U. S. President Donald Trump.

# President Trump struck a protectionist tone, disappointing investors who hoped to hear further details on his promises of tax cuts and other stimulus.

# SPDR gold trust holdings dropped by 0.26% i. e. 2.08 tonnes to 807.07 tonnes from 809.15 tonnes.