Gold On MCX Settled Up 0.52% At 28785

Gold on MCX settled up 0.52% at 28785 amid ongoing political worries surrounding U.S. President Donald Trump that are expected to keep weighing on the dollar. The U.S Federal Reserve's expected plans for rate increases may be too fast for an economy that has shown recent signs of weakness, St. Louis Fed President James Bullard said, making the case for a continued go-slow approach as inflation progress stalls.

The metal advanced by 2.2 percent last week as the furor over U.S. President Donald Trump's alleged links to Russia and his firing of former Federal Bureau of Investigation chief James Comey raised concerns about his ability to push through promised fiscal stimulus. That caused a rush to safe-haven assets such as gold and drove U.S. stocks, the dollar and U.S. bond yields lower, reducing the opportunity cost of holding non-yielding bullion and making gold cheaper for holders of other currencies.

Dallas Fed President Robert Kaplan, a voter this year on the Fed's policy-setting panel, said on Monday the U.S. central bank should keep raising rates before year-end, though he was not yet ready to declare victory on inflation. Investors' net long position in COMEX gold meanwhile has fallen to a two-month low, U.S. Commodity Futures Trading Commission (CFTC) data showed.

Technically market is under short covering as market has witnessed drop in open interest by -0.56% to settled at 4054 while prices up 150 rupees, now Gold is getting support at 28632 and below same could see a test of 28480 level, And resistance is now likely to be seen at 28868, a move above could see prices testing 28952.

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Suhani Verma

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