FREE COMMODITY GOLD NEWS 02-01-17
Gold snapped a three-year losing streak with prices rising 10% in 2016, but those gains came early while the metal ended the year under a cloud of relentless selling. A drop in the U.S. dollar index prompted good short covering in the futures market and some bargain hunting in the cash market. However, the safe haven asset is down nearly one percent in December, and about 12 percent this quarter. While the precious metal has always been hoarded in times of trouble, a bevy of political and economic surprises in 2016 sparked a surge in buying that sent bullion to the first annual gain in four years. There are signs inflation is ticking higher, with price gains potentially supportive of bullion as a hedge. The U.S. consumer price index rose 1.7 percent last month as energy costs climbed, matching expectations to post the biggest year-over-year advance since October 2014. Still,
investors continue to shed holdings in bullion-backed exchange-traded funds, with assets down 1.1 metric tons to 1,778 tons, the lowest since May, according to data. Global holdings have dropped as the Fed raised rates by a quarter-point on Dec. 14 for only the second hike since the central bank cut borrowing costs to near-zero in 2008. Policy makers have signaled three increases may be warranted in 2017, according to the latest quarterly projection. Technically market is under long liquidation as market has witnessed drop in open interest by -0.73% to settled at 6538 while prices down -117 rupee, now Gold is getting support at 27366 and below same could see a test of 27287 level, And resistance is now likely to be seen at 27579, a move above could see prices testing 27713.
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Free Commodity Tips : Join our Whatsapp No : 9094047040Gold snapped a three-year losing streak with prices rising 10% in 2016, but those gains came early while the metal ended the year under a cloud of relentless selling. A drop in the U.S. dollar index prompted good short covering in the futures market and some bargain hunting in the cash market. However, the safe haven asset is down nearly one percent in December, and about 12 percent this quarter. While the precious metal has always been hoarded in times of trouble, a bevy of political and economic surprises in 2016 sparked a surge in buying that sent bullion to the first annual gain in four years. There are signs inflation is ticking higher, with price gains potentially supportive of bullion as a hedge. The U.S. consumer price index rose 1.7 percent last month as energy costs climbed, matching expectations to post the biggest year-over-year advance since October 2014. Still,
investors continue to shed holdings in bullion-backed exchange-traded funds, with assets down 1.1 metric tons to 1,778 tons, the lowest since May, according to data. Global holdings have dropped as the Fed raised rates by a quarter-point on Dec. 14 for only the second hike since the central bank cut borrowing costs to near-zero in 2008. Policy makers have signaled three increases may be warranted in 2017, according to the latest quarterly projection. Technically market is under long liquidation as market has witnessed drop in open interest by -0.73% to settled at 6538 while prices down -117 rupee, now Gold is getting support at 27366 and below same could see a test of 27287 level, And resistance is now likely to be seen at 27579, a move above could see prices testing 27713.
