Gold on MCX settled down -0.36% at 29834 as the U.S. dollar steadied, but underlying demand for bullion was seen as robust ahead of major festivals in India. Demand for bullion is expected to pick up ahead of festivals in India such as Dhanteras and Diwali, when gold is traditionally given as a gift. New U.S. single-family home sales unexpectedly rose in September, pointing to sustained demand for housing even as data for the prior three months was revised lower.The European Central Bank is nearly certain to continue buying bonds beyond its March target and to relax its constraints on the purchases to ensure it finds enough paper to buy, central bank sources have told.
The Bank of Japan is likely to hold off on expanding stimulus next week despite an expected downgrade in its price forecast that may show Governor Haruhiko Kuroda won’t see inflation hit his 2 percent target before his tenure ends in 2018. Britain escaped a severe economic slowdown in the three months after the Brexit referendum shock, official figures are expected to show on Thursday, further diminishing the chance of a fresh interest rate cut by the Bank of England next week. The Bank of England is not now expected to ease policy until early 2017, according to economists in a Reuters poll who almost unanimously said staying in the European Union would be the best for Britain’s long-term trading prospects.
The dollar edged up against the yen early on Thursday while the euro and sterling held their gains versus the greenback, with a rise in bond yields supporting the currencies. Technically now Gold is getting support at 29758 and below same could see a test of 29681 level, And resistance is now likely to be seen at 29956, a move above could see prices testing 30077.
GOLD Trading Ideas :
♣ Gold trading range for the day is 29681-30077.
♣ Gold prices inched down as the U.S. dollar steadied, but underlying demand for bullion was seen as robust ahead of major festivals in India.
♣ Bank of England Governor Mark Carney cast doubt on expectations for more monetary stimulus.
♣ SPDR gold trust holdings dropped by 1.49% i.e. 14.24 tonnes to 942.59 tonnes from 956.83 tonnes.