Gold settled up 0.40% at 28905 rallied to a more than one-week high, as demand for safe haven assets strengthened amid intensifying tensions between Russia and Ukraine. Concerns over the conflict between Russian and Ukraine escalated on Friday after U.S. Secretary of State John Kerry warned that Washington was ready to step up sanctions on Russia.
The West is accusing Russia of leading a separatist revolt in eastern Ukraine after it annexed Crimea last month. Also Gold demand is picking up in India ahead of a key festival and should help curb any further weakness in international prices.
Nevertheless, observers say the festival itself likely won’t be enough to spark a sharp rally considering the continuing restrictions on gold imports into India and recently lukewarm Chinese demand.
However, Market do look for an eventual relaxation of the onerous Indian import rules, which should then help consumption, although they do not see this occurring until sometime after spring elections. The Akshaya Tritiya festival occurs in India on May 2. Additionally, May is considered one of the two “wedding seasons” in the country.
Meanwhile, market players continued to monitor U.S. data for further indications on the strength of the economy and the future course of monetary policy. Data on Friday showed that consumer confidence rose to a nine-month high in April, adding to signs that the economy is improving. The University of Michigan reported that its consumer sentiment index came in at 84.1 this month, up from 80 in March and the preliminary reading of 82.6.
Technically market is under fresh buying and getting support at 28787 and below same could see a test of 28668 level, and resistance is now likely to be seen at 28995, a move above could see prices testing 29084.
Trading Ideas:
--Gold trading range for the day is 28668-29084.
--Gold gained due to short supplies amid firm demand ahead of the second-biggest gold buying festival.
--Supplies of gold were scant in the physical market due to spending curbs during elections ahead of Akshaya Tritiya on May 2.
--A report showed that U.S. durable goods orders rose more than expected in March, fuelling optimism over the strength of country's economic recovery.
www.punjiniveshonline.com Contact 9619662404
www.punjiniveshonline.com Contact 9619662404
The West is accusing Russia of leading a separatist revolt in eastern Ukraine after it annexed Crimea last month. Also Gold demand is picking up in India ahead of a key festival and should help curb any further weakness in international prices.
Nevertheless, observers say the festival itself likely won’t be enough to spark a sharp rally considering the continuing restrictions on gold imports into India and recently lukewarm Chinese demand.
However, Market do look for an eventual relaxation of the onerous Indian import rules, which should then help consumption, although they do not see this occurring until sometime after spring elections. The Akshaya Tritiya festival occurs in India on May 2. Additionally, May is considered one of the two “wedding seasons” in the country.
Meanwhile, market players continued to monitor U.S. data for further indications on the strength of the economy and the future course of monetary policy. Data on Friday showed that consumer confidence rose to a nine-month high in April, adding to signs that the economy is improving. The University of Michigan reported that its consumer sentiment index came in at 84.1 this month, up from 80 in March and the preliminary reading of 82.6.
Technically market is under fresh buying and getting support at 28787 and below same could see a test of 28668 level, and resistance is now likely to be seen at 28995, a move above could see prices testing 29084.
Trading Ideas:
--Gold trading range for the day is 28668-29084.
--Gold gained due to short supplies amid firm demand ahead of the second-biggest gold buying festival.
--Supplies of gold were scant in the physical market due to spending curbs during elections ahead of Akshaya Tritiya on May 2.
--A report showed that U.S. durable goods orders rose more than expected in March, fuelling optimism over the strength of country's economic recovery.
www.punjiniveshonline.com Contact 9619662404
www.punjiniveshonline.com Contact 9619662404
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