Technically Gold market is under short covering as market has witnessed drop in open interest by 3.3% to settled at 7949 while prices up 58 rupees.
Now MCX Gold is getting support at 29590 and below same could see a test of 29513 levels and resistance is now likely to be seen at 29739, a move above could see prices testing 29811.
Gold prices seen supported drawing some support from global political tensions and a slightly weaker dollar against the yen. Investors bet global trade tensions and a robust US economy would continue to support the currency.
Better-than-expected data on US initial jobless claims and generally rising producer prices also helped the dollar hold its gains. North Korea on Thursday denounced U.S. calls for enforcing international sanctions despite its goodwill moves and said progress on denuclearization promises could not be expected if Washington followed an “outdated acting script”.
Japan’s Economy Minister Toshimitsu Motegi said he had a frank exchange about trade on Thursday with U.S. Trade Representative Robert Lighthizer, while appearing to stick with Tokyo’s position of avoiding a bilateral free-trade agreement.
The number of Americans filing for unemployment benefits unexpectedly fell last week, suggesting that a strong economy was helping the labour market weather ongoing trade tensions between the United States and a host of other countries.
The U.S. economy is performing “very well” with continued growth clearing the way for one or two more interest rate hikes in 2018, Chicago Federal Reserve Bank President Charles Evans said on Thursday in an interview in which he dismissed earlier worries about weak inflation.
US producer prices were unchanged in July for the first time in seven months as a modest increase in the cost of goods was offset by a drop in services, but underlying producer inflation continued to push higher.
--Gold trading range for the day is 29513-29811.
--Gold prices seen supported drawing some support from global political tensions and a slightly weaker dollar against the yen.
--The number of Americans filing for unemployment benefits unexpectedly fell last week, suggesting that a strong economy was helping the labour market.
--China warned that duties imposed by President Donald Trump’s administration on some $50 billion of Chinese imports set to be enacted on Aug. 23.
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