MCX Bullion Trend
Gold futures settled sharply lower on Friday, making their gains for the week disappears, amid pressure from a stronger U.S. dollar against basket of currencies as well as recent gains in oil prices.
After the release of better than expected US GDP and a jump in oil prices, we had seen continued profit-booking by speculators, dragged down gold prices. European shares rose to a three-week high as financial leader from G20 nations gathered in Shanghai against a backdrop of worsening economic conditions and a lack of wider consensus on how to fix the problems. Gold seems to have rediscovered its role as a shelter for risk-averse investors, rising around 16 percent this year as share prices have tumbled and fears of a global economic slowdown increased. It hit a one-year high of $1,260.60 this month (30095 in MCX), further supported by the reprising of expectations for US interest rate rises.
When the FOMC meets again next month, the committee will release its quarterly long-term economic projections, also known as its “dot-plot.” The assessment includes long range projections for changes in Real GDP, unemployment, inflation and the Fed’s benchmark interest rate. Since the FOMC ended a seven-year zero interest rate policy in December, threats of a global economic slowdown and extreme volatility in financial markets worldwide have prompted the U.S. central bank to reconsider its pace of tightening.
MCX Bullion Tips
As bullion tips for the week we suggest Buy in MCX Gold April around 29000, For weekly target of 29500 abd 29900, place a stop loss at 28800.