Daily Market Update Report as on Wednesday, September 26, 2018 Gold prices traded in the range but sentiments remain firm as the US dollar stayed mostly sluggish amid simmering trade war fears and ahead of Fed's rate decision. The US Federal Reserve, scheduled to announce its monetary policy on Wednesday, is expected to raise interest rate by 25 basis points. The accompanying statement that would reveal the bank's views on the economy and its forecasts for coming years, and the Fed Chief Jerome Powell's press conference later in the day are expected to provide clues about future rate hikes. Govt To Hike Import Duty; Gold To Not Become Expensive - The government is aiming to increase the import duty on some of the items including stones, electronics etc as it tries to curb the inflow of items that move between the US and China. There is a threat that these items may see redirection due to the tariff imposed by both of these economies. To support the falling rupee, non-essential imports are being curbed. It is seen that with increase in the import duty many of the items will see a price hike barring gold. India Rules Out Higher Gold Tax - Jewelers in India breathed a sigh of relief after the government is said to have ruled out raising import taxes on gold to curb a slump in the local currency. Gold futures in Mumbai rose and shares of Titan Co., India s largest maker of branded jewelry by market value, pared losses. The country isn t planning to raise the tax on gold imports from the current 10 percent as it may lead to an increase in illegal shipments into the world s second largest consumer, said the people with knowledge of matter, who did not wish to be identified as discussions were private. World Gold Council expects RBI's demand for gold to remain buoyant - The World Gold Council has said the Reserve Bank of India (RBI) has, since the start of 2017, been the fourth largest buyer of gold for adding to foreign exchange reserves. Russia, Turkey and Kazakhstan are the top three. Top 10 gold buyers since 2017 Globally, more and more central banks are buying gold for their forex reserves. In recent years, more central banks have entered the gold market. International Monetary Fund (IMF) data reveal Egypt recently bought gold for the first time since 1978. World Gold Council to Submit Blue Print to Govt on Spot Exchanges - World Gold Council (WGC) would soon submit a blueprint to the government on spot exchanges, its managing director for India operations said at an ASSOCHAM event held in New Delhi today. We have given a blueprint as a steering committee, we have drafted it and it is in the final stages, we will be releasing it very shortly, said Mr Somasundaram PR, managing director-india, WGC at an ASSOCHAM International Gold Summit. Date Gold* Silver* 25 Sep 2018 (Tuesday) 30905.00 37135.00 24 Sep 2018 (Monday) 30855.00 37195.00 21 Sep 2018 (Friday) 30840.00 37035.00 The above rate are IBJA PM rates * Rates are exclusive of GST 25 Sep 2018 (Tuesday) Page 1
Outlook: Gold was steady amid simmering U.S.-China trade tensions after a new set of tariffs came into effect, while investors stuck to the sidelines ahead of a U.S. Federal Reserve meeting. For the day prices a drop towards 30750-30700 will look to buy with a stoploss of below 30580 expecting prices to jump towards 30920-30050 level. MCX GOLD Market View Daily Levels Open High Low Close Value Change % Change Margin Margin (Rs.) Volume Open Interest Cng in OI (%) Prev Value(Mln) 52 Week High 52 Week Low 30797.00 30847.00 30730.00 30819.00-23.00-0.07 5.00 154095 8805.00 5832.00-11.81 27115.98 31963.00 29268.00 Resistance 30985.00 30916.00 30868.00 30751.00 30682.00 30634.00 Support Spread DEC - OCT 304.00 FEB - DEC 105.00 Gold steadied as the dollar drifted ahead of a U.S. Federal Reserve monetary policy meeting, but bullion s upside remained capped by strong U.S. economic data that continues to underpin the greenback. U.S. consumer confidence surged to an 18-year high in September as households grew more upbeat about the labour market, pointing to sustained strength in the economy despite an increasingly bitter trade dispute between the United States and China. U.S. President Donald Trump s top trade official said that changing China s economic policies to become more market-oriented is not going to be easy even with tariffs now in place on $250 billion worth of Chinese goods. Although gold is generally considered to be a safe-haven asset, the months-long trade rift between Washington and Beijing has instead prompted investors to buy U.S. dollars in the belief that the United States has less to lose from the dispute. Donald Trump and Iranian President Hassan Rouhani exchanged taunts at the United Nations General Assembly on Tuesday with the U.S. President vowing more sanctions against Tehran and Rouhani suggesting his American counterpart suffers from a weakness of intellect. Money markets now anticipate the ECB will lift interest rates in September 2019, bringing forward expectations for a first rate hike in a sign of growing conviction that a move will come before Mario Draghi s term as ECB chief ends. Investors waited for details of the U.S. Federal Reserve s two-day meeting that should give clues whether policymakers will raise interest rates for the third time this year. Technically now Gold is getting support at 30751 and below same could see a test of 30682 level, And resistance is now likely to be seen at 30868, a move above could see prices testing 30916. Page 2
INT. GOLD$ Market View Daily Levels Open High Low Close Value Change % Change 1198.62 1202.89 1196.95 1201.01 2.55 0.00 Resistance 1209.56 1206.22 1203.62 1197.68 1194.34 1191.74 Support Outlook: Gold price didn t show any strong move in yesterday s session, keeping the fluctuation near the EMA50, therefore, there is no change on our bearish trend expectations that conditioned by holding below 1208.40 level, while its targets begin by breaking 1190.00 level to open the way towards targeting 1180.00 levels mainly. Being aware that breaching 1208.40 will stop the suggested decline and leads the price to achieve gains that reach to 1238.31 on the near term basis. Expected trading range for today is between 1180.00 support and 1212.60 resistance. Gold steadied as the dollar drifted ahead of a U.S. Federal Reserve monetary policy meeting, but bullion s upside remained capped by strong U.S. economic data that continues to underpin the greenback. U.S. consumer confidence surged to an 18-year high in September as households grew more upbeat about the labour market, pointing to sustained strength in the economy despite an increasingly bitter trade dispute between the United States and China. U.S. President Donald Trump s top trade official said that changing China s economic policies to become more market-oriented is not going to be easy even with tariffs now in place on $250 billion worth of Chinese goods. Although gold is generally considered to be a safe-haven asset, the months-long trade rift between Washington and Beijing has instead prompted investors to buy U.S. dollars in the belief that the United States has less to lose from the dispute. Donald Trump and Iranian President Hassan Rouhani exchanged taunts at the United Nations General Assembly on Tuesday with the U.S. President vowing more sanctions against Tehran and Rouhani suggesting his American counterpart suffers from a weakness of intellect. Money markets now anticipate the ECB will lift interest rates in September 2019, bringing forward expectations for a first rate hike in a sign of growing conviction that a move will come before Mario Draghi s term as ECB chief ends. Investors waited for details of the U.S. Federal Reserve s two-day meeting that should give clues whether policymakers will raise interest rates for the third time this year. Technically now Gold is getting support at 1200.20 and below same could see a test of 1194.80 level, And resistance is now likely to be seen at 1212.60, a move above could see prices testing 1218.00. Page 3
Indian rupee continued its losing streak to 0.08 per cent lower at 72.6950. The currency is not far away from its all-time low of 72.9675 that was struck on September 18. Technically market is under short covering and getting support at 72.52 and below same could see a test of 72.26 level, And resistance is now likely to be seen at 72.96, a move above could see prices testing 73.18. USDINR Market View Daily Levels Open High Low Close Value Change % Change Margin Margin (Rs.) Volume Open Interest Cng in OI (%) Prev Value(Mln) 52 Week High 52 Week Low 72.8000 72.9650 72.5700 72.6975 0.0750 0.10 2.51 1825 3586528 1811807-30.55 260947.59 73.0375 64.5000 Resistance 73.31 73.14 72.92 72.52 72.35 72.13 Support Spread OCT - SEP 0.3075 NOV - OCT 0.2800 Rupee extended losses on selling by oil importers tracking sharp rise in crude oil prices after OPEC refused to boost oil output. The Reserve Bank of India announced purchase of government bonds worth Rs 100 billion through open market operations (OMO). The central Bank has announced the OMO purchase auction after analysing the needs of durable liquidity going forward through multi-security auction using multiple price method, RBI said in a statement. The greenback remained subdued against other major currencies as investors await the upcoming Federal Reserve policy, wherein policymakers are widely expected to hike rates this week, as financial markets fret over a heated Sino-US trade dispute. India s central bank said it would buy 100 billion rupees ($1.38 billion) of government bonds in an open market operation, amid efforts by authorities to reassure investors over a brewing debt crisis in the non-banking financial sector (NBFC). Finance Minister Arun Jaitley told investors the government would take necessary steps to ensure adequate liquidity to NBFCs after both the central bank and the market regulator said they were closely monitoring developments and stood ready to act. The Reserve Bank of India will buy 7.8 percent of the 2020 bond, 8.2 percent of the 2022 bond, 7.72 percent of the 2025 bond, 6.79 percent of the 2027 bond and 6.68 percent of the 2031 bond via an open market operation on September 27, it said. Technically now USDINR is getting support at 72.635 and below same could see a test of 72.405 level, And resistance is now likely to be seen at 73.03, a move above could see prices testing 73.195. Page 4
Gold Spot 995 Gold Spot 999 Exch. Descr. Last* Exch. Descr. Last* CMDTY Gold 995 - Ahmedabad 31670.00 CMDTY Gold 999 - Ahmedabad 31800.00 CMDTY Gold 995 - Bangalore 31685.00 CMDTY Gold 999 - Bangalore 31835.00 CMDTY Gold 995 - Chennai 31685.00 CMDTY Gold 999 - Chennai 31835.00 CMDTY Gold 995 - Cochin 31685.00 CMDTY Gold 999 - Cochin 31835.00 CMDTY Gold 995 - Delhi 31680.00 CMDTY Gold 999 - Delhi 31830.00 CMDTY Gold 995 - Hyderabad 31660.00 CMDTY Gold 999 - Hyderabad 31810.00 CMDTY Gold 995 - Jaipur 31680.00 CMDTY Gold 999 - Jaipur 31800.00 CMDTY Gold 995 - Kolkata 31700.00 CMDTY Gold 999 - Mumbai 31825.00 CMDTY Gold 995 - Mumbai 31675.00 * Rates including GST * Rates including GST Silver Spot 999 Bullion Futures on MCX Exch. Descr. Last* Exch. Descr. Last CMDTY Silver 999 - Ahmedabad 37820.00 MCX GOLD 04AUG2017 30819.00 CMDTY Silver 999 - Bangalore 38215.00 MCX GOLD 05OCT2017 31123.00 CMDTY Silver 999 - Chennai 38210.00 MCX GOLD 05DEC2017 31228.00 CMDTY Silver 999 - Delhi 38190.00 MCX SILVER 05JUL2017 38242.00 CMDTY Silver 999 - Hyderabad 38295.00 MCX SILVER 05SEP2017 39051.00 CMDTY Silver 999 - Jaipur 38195.00 MCX SILVER 05DEC2017 39581.00 CMDTY Silver 999 - Kolkata 38350.00 CMDTY Silver 999 - Mumbai 38320.00 * Rates including GST Bullion Futures on DGCX Gold and Silver Fix Exch. Descr. Last Exch. Descr. Last DGCX GOLD 26SEP2018 1201.00 CMDTY Gold London AM FIX 1341.05 DGCX GOLD 28NOV2018 1205.60 CMDTY Gold London PM FIX 1341.05 DGCX GOLD QUANTO 27SEP2018 30822.00 CMDTY Silver London FIX 16.45 DGCX GOLD QUANTO 29NOV2018 31182.00 DGCX SILVER 28NOV2018 14.55 Gold / Silver Ratio DGCX SILVER 26FEB2019 14.57 Exch. Descr. Last DGCX SILVER QUANTO 29NOV2018 41189.00 INTL. SPOT GOLD SILVER RATIO 82.95 MCX MCX GOLD SILVER RATIO 80.59 Page 5
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