Gold On MCX Settled Down -0.38% At 29019 - Ways2Capital

Gold on MCX settled down -0.38% at 29019 as the dollar strengthened despite a market fraught with the type of political drama that would ordinarily have offered a boost to precious metals. Pressure also seen after British elections failed to deliver a clear majority for Prime Minister Theresa May, knocking the pound sharply lower and helping lift the dollar index to its highest since late May. Now, U.K. Prime Minister Theresa May will attempt to form a minority government, where her Conservative Party would need to rally outside support in each parliamentary vote.

Demand for gold in Asia was muted this week as the bullion's rebound in prices curbed purchases, with discounts in India widening to the highest in more than five months. Dealers in India, the second-biggest gold consumer, were offering a discount of up to $3.5 an ounce this week over official domestic prices, the highest since the last week of December. India's gold imports in May surged four-fold from a year ago to 103 tonnes as jewellers increased purchases to replenish inventory and stock up ahead of a new national sales tax, data from showed.

Demand in top consumer China remained weak with premiums dipping to $4-$6 per ounce this week versus $7 last week. In Singapore, gold was being sold at a premium of $1, nearly flat from previous week, while Hong Kong premiums ranged between 40 cents to $1, compared with 60 cents to $1 an ounce last week.

Technically market is under long liquidation as market has witnessed drop in open interest by -1.89% to settled at 4611 while prices down -112 rupees, now Gold is getting support at 28915 and below same could see a test of 28812 level, And resistance is now likely to be seen at 29111, a move above could see prices testing 29204.

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Suhani Verma

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