Technically Gold market is under long liquidation as market has witnessed drop in open interest by 4.53% to settled at 11561 while prices down 455 rupees.
Now MCX Gold is getting support at 51134 and below same could see a test of 50949 levels, and resistance is now likely to be seen at 51594, a move above could see prices testing 51869.
Gold yesterday settled down by 0.88% at 51319 after the European Central Bank stopped short of offering any concrete signals on further stimulus, but lingering economic uncertainties kept the metal on track for a weekly rise.
The ECB did not address the stronger Euro, neither did it come up with any stimulus plans, which will keep inflation in check in the Euro zone.
European Central Bank President Christine Lagarde played down concerns about the euro’s strength and disappointed hopes for more stimulus.
Recent data showed, Britain’s economy grew for a third month in a row in July as some sectors reopened after the coronavirus lockdown, but it remained around 12% smaller than its pre-pandemic level.
Economic data showed weekly US jobless claims were worse-than-expected last week.The Labor Department reported 884,000 first-time filings for unemployment insurance in the week of Aug. 30 to Sept. 5, compared with 850,000 expected by surveyed by Dow Jones.
Continuing jobless claims, or the number of people already receiving benefits, rose by 93,000 to a seasonally adjusted 13.39 million in the seven days ended Aug. 29. It was the first increase in five weeks.
–Gold trading range for the day is 50949-51869.
–Gold dipped after the