GOLD SETTLE $ 1570.80 LOWER $ 19.30
Overnight trade was very quiet with little overnight data. The reaction in the market to yesterday’s Bernanke Testimony was sharp with strong selling in reaction to his statement followed by a corrective rally to new highs later in the Q and A session. Essentially there was more of the same as Bernanke made no commitments to new QE policy though maintained the stance that the Fed is ready to act should the data continue to be negative.
The testimony is set to continue today as Bernanke moves from the Senate to the House. The testimony will be follow by the Fed’s Beige Book report that should go a long way to defining the Fed’s current view of the state of the economy. There was some significant volatility yesterday in response to the testimony that could show up again in the market today, though the statement should not change. One of the most affected markets was the Gold. While it remains within the parameters of the current pennant formation, it is showing some sharp selling as the need for a QE inflation hedge and a safe haven hedge appear to be less than necessary in the current climate. Should this continue today, we could see a test of the bottom trend line of the forming pennant currently at 1557.
TODAY LEVEL
RESISTENCE # 2........................... $ 1593
RESISTENCE # 1............................$ 1582
PIVOT ...............................................$ 1575
SUPPORT #1...................................$ 1564
SUPPORT #2...................................$ 1557
MCX
RESISTENCE #2............................ INR 29350
RESISTENCE #1.............................INR 29260
PIVOT ...............................................INR 29185
SUPPORT #1...................................INR 29100
SUPPORT #2...................................INR 29030
Happy Trading
Rahul Kumar
Gold Specialiest (Spot & Future)
Call me : +91 895-8173-410
Overnight trade was very quiet with little overnight data. The reaction in the market to yesterday’s Bernanke Testimony was sharp with strong selling in reaction to his statement followed by a corrective rally to new highs later in the Q and A session. Essentially there was more of the same as Bernanke made no commitments to new QE policy though maintained the stance that the Fed is ready to act should the data continue to be negative.
The testimony is set to continue today as Bernanke moves from the Senate to the House. The testimony will be follow by the Fed’s Beige Book report that should go a long way to defining the Fed’s current view of the state of the economy. There was some significant volatility yesterday in response to the testimony that could show up again in the market today, though the statement should not change. One of the most affected markets was the Gold. While it remains within the parameters of the current pennant formation, it is showing some sharp selling as the need for a QE inflation hedge and a safe haven hedge appear to be less than necessary in the current climate. Should this continue today, we could see a test of the bottom trend line of the forming pennant currently at 1557.
TODAY LEVEL
RESISTENCE # 2........................... $ 1593
RESISTENCE # 1............................$ 1582
PIVOT ...............................................$ 1575
SUPPORT #1...................................$ 1564
SUPPORT #2...................................$ 1557
MCX
RESISTENCE #2............................ INR 29350
RESISTENCE #1.............................INR 29260
PIVOT ...............................................INR 29185
SUPPORT #1...................................INR 29100
SUPPORT #2...................................INR 29030
Happy Trading
Rahul Kumar
Gold Specialiest (Spot & Future)
Call me : +91 895-8173-410
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