Gold Silver Reports — MCX Gold settled flat up 0.12% at 31015 traded in the range as investors unwound safe-haven trades in the wake of a failed military coup in Turkey.
The Turkish government said on Sunday it was in full control of the country and economy after thwarting an apparent military coup to topple President Tayyip Erdogan late on Friday. Authorities widened a crackdown on suspected supporters of the failed coup over the weekend, taking the number of people rounded up in the armed forces and judiciary to 6,000.
Gold initially turned higher in post-settlement trade late on Friday as news of the coup attempt spooked investors. Prices were also weighed after a number of upbeat U.S. economic reports last week suggested that economic growth regained speed in the second quarter. The bullish data could allow the Fed to raise interest rates later this year, but much will depend on policymakers’ assessment of the impact on the U.S. economy of Britain’s June 23 vote to leave the EU.
Despite recent losses, gold is up nearly 25% so far this year, as speculation mounted that central banks around the world will step up monetary stimulus to counteract the negative economic shock from the Brexit vote. Expectations of monetary stimulus tend to benefit gold, as the metal is seen as a safe store of value and inflation hedge. In the week ahead, market players will be focusing on the outcome of Thursday’s ECB meeting to see if policymakers will step up monetary stimulus to counteract the negative economic shock from the Brexit vote. Technically market is getting support at 30884 and below same could see a test of 30534 level, and resistance is now likely to be seen at 31143, a move above could see prices testing 31280. — Neal Bhai Reports
