Commodity Trading Tips for Gold by Kedia Commodity
Gold on MCX settled up 0.42% at 29418 as investors awaited the first-round of voting in the presidential French election at the weekend and possible announcements about tax changes in the United States. There was potential for safe-haven buying of gold after France said security forces were fully mobilized for the weekend vote after an Islamist militant killed a policeman Thursday night. Safe-haven demand re-emerged after a French policeman was shot dead and two others were wounded in central Paris on Thursday night in an attack claimed by the Islamic State militant group. Investors were also watching events in Washington. President Donald Trump's administration will unveil a tax reform plan soon and expects it will be approved by Congress this year, Treasury Secretary Steven Mnuchin said on Thursday. Gold prices in India were at a premium as jewellers raised purchases ahead of a key festival, while higher prices kept bullion demand in check elsewhere in Asia. Dealers in India, the world's second-largest gold market, were charging a premium of up to $1 an ounce over official domestic prices, compared to a discount of $1 last week. The domestic price includes a 10 percent import tax. Premiums in top consumer China came down to $3-4 an ounce over the international benchmark from $6-$7 an ounce last week. Hong Kong premiums were quoted at around 60 to 90 cents, unchanged from last week. Technically market is under short covering as market has witnessed drop in open interest by -1.25% to settled at 6699 while prices up 123 rupees, now Gold is getting support at 29279 and below same could see a test of 29139 level, And resistance is now likely to be seen at 29503, a move above could see prices testing 29587.
Gold trading range for the day is 29139-29587.
Gold prices rose as investors awaited the first-round of voting in the presidential French election at the weekend and possible announcements about tax changes in US.
There was potential for safe-haven buying of gold after France said security forces were fully mobilized for the weekend vote.
SPDR gold trust holdings gained by 0.52% i. e. 4.44 tonnes to 858.69 tonnes from 854.25 tonnes.