MCX - WEEKLY NEWS LETTERS
✍ BULLION
Gold pared early gains on Thursday as the U.S. dollar recovered and global stocks rallied after oil producers agreed to curb output. The Organization of Petroleum Exporting Countries on Wednesday agreed modest oil output cuts in the first such deal since 2008, with the group's leader Saudi Arabia softening its stance on arch-rival Iran amid mounting pressure from low crude prices. shares pulled regional stock markets higher on Thursday. ‘ Once again struggled to find direction in low volumes, with regional names happy to sit on the sidelines as gold threatens a test of the 100-day moving average around $ 1,310," "With some time still to pass until the currently expected U.S. Federal reserve rate rise in December, gold looks likely to hold range-bound over the short term." Division between Federal Reserve policy makers on when to raise U.S. interest rates has sapped investor enthusiasm for trading on comments by officials from the central bank. gold and dollar markets are currently without very strong direction. The mixed views from U.S. Fed officials have weakened their credibility and the market has stopped buying their comments," Spot gold XAU= was steady at $1,320.62 an ounce by 0706 GMT. U.S. gold futures GCcv1 were up nearly 0.1 percent at $1,324.30 an ounce.

Gold prices hit a one-week low on Wednesday, as the dollar firmed and investors assessed Federal Reserve Chair Janet Yellen's testimony before a Congressional committee. The Federal Reserve is considering changing the annual stress tests it gives to U.S. banks to see if they can withstand a massive financial crisis, Yellen said. The Fed's chair did not comment on the outlook for the economy or monetary policy in her prepared remarks. gold XAU= fell 0.4 percent to $1,322.95 an ounce by 1409 GMT. It fell nearly one percent on Tuesday, its biggest single-day loss in one month on a higher appetite for risk. U.S. gold futures GCcv1 eased 0.3 percent to $1,326.20 an ounce. Gold's next technical support level stands at $ 1,320, while the closest resistance is $ 1,350, MKS SA head of trading Afshin Nabavi said. Minneapolis Fed President Neel Kashkari said the central bank could keep rates low for a while as inflation remains weak. markets will also monitor Cleveland Fed President Mester and Kansas City Fed President George's speeches on the economy and monetary policy at separate events. "It is probably going to be a case of watching out for these Fed officials' comments," We also have Friday's U.S. inflation reading, which is the bank's preferred measure of inflation and if that shows tick up towards the 2 percent target, it would give more confidence to markets that the Fed will move to raise rates in December." Butler added that traders were also watching a meeting of oil producers in Algiers this week to see if an agreement could be reached to ease a global glut of crude. Gold is often seen as a hedge against oil-led inflation. The dollar .DXY was up 0.1 percent against a basket of six major currencies, making gold more expensive for foreign currency holders. Holdings of the SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.22 percent to 949.14 tonnes on Tuesday.





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