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MCX Gold Likley To Soften Considerably
Amid a whirlwind activity in the currency markets, the Gold futures managed to end marginally higher yesterday after the US FOMC, as largely anticipated, cut its benchmark lending rate by 25-basis points to 4.25% while also lowering the discount rate by 25-basis points to 4.75%.
However, the accompanying Fed statement reiterated slowing economic growth due to “intensification of the housing correction with some softening in business and consumer spending”. However, the FOMC continued to highlight concerns over lingering inflationary pressure – saying, “readings on core inflation have improved modestly, but elevated energy and commodity prices may put upward
Comex Gold for February delivery rose $3.6 to close at $817.1 an ounce on the New York Mercantile Exchange today. Last week, prices rose by more than 1.4%.
Comex Silver futures for March delivery gained 1.5 cents at $14.865 an ounce. Prices touched 26 year high on 7 November, after reaching $16.275. The metal has climbed 15% this year.
In the currency market, the dollar slipped against the yen but gained against most other major rivals. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, rose 0.2% at 76.230.
Meanwhile, in the energy market, oil prices rose by more than $2/barrel crossing the $90/barrel once again.
Outlook:
MCX Gold closed at Rs 10362 per 10 grams yesterday, gaining Rs 25 though the falling open interest and volumes suggested that the counter might be in for a slide today, after three consecutive positive sessions. COMEX Gold has eased considerably in the Asian trades today, trading at $807.20, dropping nearly 10 dollars per ounce. We may expect a frail opening on MCX today and the counter may test the levels of Rs 10225 in intraday moves. The next support lies around Rs 10180.
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