Gold Climbed As A Pullback In The Dollar

  • Commodities Analysis

Gold yesterday settled up by 0.34% at 52984 as a pullback in the dollar outweighed pressure from hawkish remarks by U.S. Federal Reserve officials on interest rate hikes. The Federal Reserve needs to raise interest rates quite a bit further and then hold them there throughout next year and into 2024 to gain control of inflation and bring it back down toward the U.S. central bank's 2% goal, St. Louis Fed President James Bullard said. "We've got a ways to go to get restrictive," Bullard said, as he restated his conviction that the Fed's target policy rate needs to rise to at least a range between 5.00% and 5.25% from the current level of 3.75%-4.00% to be "sufficiently restrictive" to reduce inflation.

India witnessed a decline in both gold and silver imports in October, according to the latest by the Commerce ministry. The import of the yellow metal declined 17.38% to about $24 billion during April-October due to a fall in demand, according to the data of the commerce ministry. The gold import stood at $29 billion in the corresponding period last year, the ministry added. China's net gold imports via Hong Kong in October fell by 45% from the previous month, Hong Kong Census and Statistics Department data showed.

Technically market is under fresh buying as the market has witnessed a gain in open interest by 5.59% to settle at 15185 while prices are up 181 rupees, now Gold is getting support at 52857 and below same could see a test of 52729 levels, and resistance is now likely to be seen at 53149, a move above could see prices testing 53313.

Trading Ideas:
# Gold trading range for the day is 52729-53313.
# Gold prices climbed as a pullback in the dollar outweighed pressure from hawkish remarks by U.S. Federal Reserve officials on interest rate hikes.
# Fed needs to raise interest rates quite a bit further and then hold them there throughout next year and into 2024
# India Gold imports fall 17% in April-October to $24 billion.

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