Commodity Trading Tips for Gold by Kedia Commodity

Gold on MCX settled down -0.52% at 29021 as the dollar rose and equities climbed, but political and economic uncertainty in the United States and in Europe due to elections is expected to continue to give underlying support for now. U. S. economic data has stoked talk that the Federal Reserve would press ahead with U. S. interest rate hikes sooner rather than later. U. S. import prices rose more than expected in January, while initial jobless claims dropped unexpectedly last week to the lowest in nearly 43 years. The dollar hit a two-week high against the yen as investors focused again on the U. S. reflation trade which dominated the aftermath of Donald Trump's election as U. S. President in November, but has stalled this year. Investors bought equities, betting that Trump's tax reform plans will boost economic growth and corporate profits, but they are concerned by his protectionist ideas on trade. North Korea said on Monday it had successfully test- fired a new type of medium- to long-range ballistic missile the previous day, claiming advances in a weapons programme it is pursuing in violation of U. N. resolutions. Asian gold demand was mixed this week with Indian jewellers stocking up for the wedding season while rising prices kept buyers on the sidelines elsewhere. Strong demand for gold can be seen on COMEX, where speculators raised their bullish bets in gold to the highest in two months in the week to Feb. 7, U. S. Commodity Futures Trading Commission data showed on Friday. Technically market is under fresh selling as market has witnessed gain in open interest by 1.33% to settled at 6496, now Gold is getting support at 28920 and below same could see a test of 28818 level, And resistance is now likely to be seen at 29145, a move above could see prices testing 29268.

Trading Ideas:

# Gold trading range for the day is 28818-29268.

# Gold prices slipped as the dollar rose and equities climbed, but political and economic uncertainty in the United States and in Europe.

# A senior Japanese government spokesman said Abe and Trump did not discuss currency issues and that Trump did not request a bilateral trade deal.

# SPDR Gold Trust said its holdings rose 0.49 percent to 840.87 tonnes on Monday from 836.73 tonnes on Friday.