GOLD REPORT AS ON 13062017

Posted on by Achiievers

Market Commentary

Gold prices traded in range as investors remained cautious ahead of a two-day U.S. Federal Reserve meeting that is likely to provide hints on the central bank’s interest rate policy for the remainder of the year. The Fed starts a two-day meeting on Tuesday, where it is widely expected to hike interest rates. The focus is on whether the Fed thinks the U.S. economy is robust enough to withstand further rate increases through 2017. U.S. inflation expectations tumbled last month, with one key measure hitting its lowest level since early 2016, according to a Federal Reserve Bank of New York survey that could amplify the central bank’s concern over a broad slump in prices. Higher rates could boost the dollar, making commodities priced in the greenback more expensive for holders of other currencies.

Britain’s descent into political crisis just days before Brexit talks begin has sapped confidence among business leaders and infuriated bosses who were already grappling with the fallout from the vote to leave the EU. Euro zone finance ministers and the International Monetary Fund are likely to strike a compromise on Greece on Thursday, paving the way for new loans for Athens while leaving the contentious debt relief issue for later, officials said.  Technically market is under fresh selling as market has witnessed gain in open interest by 0.09% to settled at 4615 while prices down -26 rupees, now Gold is getting support at 28933 and below same could see a test of 28872 level, And resistance is now likely to be seen at 29052, a move above could see prices testing 29110.

Trading Ideas

  • Gold trading range for the day is 28872-29110.
  • Gold prices remained in range ahead of a two-day Fed policy meeting that could give clues on the pace of possible U.S interest rate hikes over the rest of the year.
  • The focus is on whether the Fed thinks the U.S. economy is robust enough to withstand further rate increases through 2017.     
  • Hedge funds and money managers raised their net long position in COMEX gold for the third straight week to the highest in seven months, CFTC showed.      
  • Market players will also pay close attention to details of the Fed’s plan to reduce its $4.5 trillion balance sheet later this year.

SELL GOLD AUG @ 29000 SL ABV 29200 TGT 28750