Gold On MCX Settled Down -0.9%

Gold on MCX settled down -0.9% at 28768 plunged in yesterdays session fell to the lowest in three weeks, as Comex prices have slipped from near $1300 over the past seven sessions in the aftermath of yesterday's Fed announcement. The Fed raised interest rates, as expected, but offered a surprisingly hawkish outlook on further rate hike and detailed its plan to gradually shrink its $4.5 trillion balance sheet.

That's despite a series of disappointing economic data, including downbeat reading on the labor market, retail sales and inflation. The dollar strengthened on the Fed statement, driving gold sharply lower. While US data the U.S. Department of Labor said initial jobless claims in the week ending June 10 decreased by 8,000 to 237,000 from the previous week’s total of 245,000. Separately, the Federal Reserve Bank of Philadelphia said its manufacturing index slipped only to 27.6 this month from May’s reading of 38.8.

Meanwhile, the Empire State manufacturing index climbed to 19.80 in June from -1.00 the previous month, compared to expectations for a reading of 4. Now market players continued to monitor political turmoil in the US after the Washington Post reported that President Donald Trump is being investigated by special counsel Robert Mueller for possible obstruction of justice.

People familiar with the matter told the Post that the obstruction of justice probe started in the wake of Trump's firing of former FBI Director James Comey. Technically market is getting support at 28666 and below same could see a test of 28563 level, And resistance is now likely to be seen at 28911, a move above could see prices testing 29053.

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Suhani Verma

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