On Monday, spot gold prices rose half a percent to trade at $1261.3 per ounce as uncertainty over U.S. tax legislation weighed on the dollar. Top U.S. Republicans expect Congress to pass the bill this week, with votes in the House of Representatives and Senate as early as Tuesday. MCX Gold price has been consolidating around the support of the lower band of the rising channel on the daily chart. Comex Gold price has closed in the green for the forth consecutive days which suggests growing bullishness among the gold traders. On the daily chart of Comex Gold, momentum indicator RSI (14) is seen to have reversed from the oversold zone and currently in a bullish crossover. Based on the above technical set up and indicators, we expect a pullback in MCX Gold price.
On the MCX, gold prices rose 0.8 percent to close at Rs.28482 per 10 gms.
We expect gold prices to trade sideways today taking in to consideration the tax overhaul that is due on 22nd December 2017 in the US.
On the MCX, gold prices are expected to trade sideways today, international markets are trading higher by 0.05 percent at $1262 per ounce.
We expect oil prices to trade higher today on outage from North Sea pipeline and workers strike in Nigeria.
On the MCX, oil prices are expected to trade higher today, international prices are trading higher by 0.2 percent to close at $57.26 per barrel.
Base metals except Zinc returned to the positive territory on Monday as stable Chinese economic data coupled with weaker DX supported an upside.
MCX base metals apart from Zinc traded higher in line with international trends.
LME Copper prices are trading lower by 0.3 percent at $6882 per tonne. Copper prices will likely trade lower today as progress over the US tax legislation will be supportive for DX and in turn hurt dollar denominated metals. Also, sharp jump in LME stocks and record production in China will hurt the metal.
Neal Bhai Report - Today Technical Analysis and Outlook Report from neal Bhai