MCX Gold Tips and Trend For Today
Gold commodity posted strong gains last week while also managed to cut back all of its losses in 2015 as sliding US Dollar support investment in yellow metal. Note, Bullion in week ending 13th March fell heavily as markets moved into the FED monetary policy on expectations that policy outcome would be hawkish. However as of the actual policy update, FOMC in its meeting came out with more dovish expectations over US economy and interest rates in the near-term, thus pushing the US Dollar lower while adding value to Gold. The US Dollar slumped below the 98 mark, tumbling over 2% during the week. On the physical side, there were small signs of improvement with premiums in Shanghai Gold Exchange staying steady at $6-$7 an ounce. Locally in India, buying on physical side is expected to gain as markets await wedding season starting April. While markets lack any major data related to monetary policy from the US next week, we expect momentum recorded into gold may extend. We have the important CPI YoY number, which if disappoints would further act supportive for an extended easy rate policy by the FED. However, traders and investors note that medium-term stance in the commodity has not switched into buying yet if we watch the broader economic indicators like ameliorating US economy, global inflation which stays lower and yearly physical and institutional demand trends in the metal . On a cumulative note, we advice buying and later selling next week.
Gold Apr MCX: Buy @25950-25900 TP 26630 SL 25400 & Sell@26630-26650 TP 25700 SL 27000
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