Comments
After Monday's steady trend on the Comex, gold prices are headed for cautious, but steady, session on Tuesday, with likelihood of monetary easing in the US.
The prices have headed for a firmer trend with positive bias at the opening trade amid supportive global cues.
The markets will closely watch the crucial US Federal Reserve's Open Market Committee (FOMC) meeting today and tomorrow, amid expectations of a lowering of interest rates — to be the first instance since the financial crisis of 2008.
In the opening trade on Tuesday, MCX Gold futures for August expiry gained about Rs 44 or 0.1 per cent to Rs 34,753 as against the close of Rs 34,709 on Monday.
Range-bound movement
“Important resistance for MCX Gold is expected at Rs 34,807-34,845, while important support is seen at Rs 34,611-34573,” an advisory from Kedia Commodities informed. It also noted that, “The expected trading range for today is between USD 1,410 an ounce support and USD 1,440 resistance.”
“Gold price shows more sideways and tight trading. As long as the price is above USD 1,410.90, our bullish overview for the upcoming period, noting that breaching USD 1,430 will ease the mission to head towards our main waited target at USD 1,450,” it said.
FOMC meet
The US FOMC will meet today amid slowing global growth and US-China trade war talks. US markets is abuzz with expectations of the Federal Reserve lowering of interest rates as part its easing.
The current target range for the Fed fund rates is 2.25 per cent to 2.5 per cent. The Fed is expected to trim the key interest rate by at least 25 basis points (bps) at its July 30-31 meeting.
A possible rate cut will fuel the liquidity into the system pushing investment demand for the yellow metal.
COMEX August gold futures were last up $4.5 an ounce at USD 1,424.9 an ounce on Monday. Notably, gold prices have increased by about 16 per cent over the last one year to over $1,420 per ounce in July 2019, whereas the gold prices have jumped by close to 20 per cent since September 2018.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.