Gold support placed at Rs 59600, resistance at Rs 60500; All eyes on FOMC meeting amid debt crisis By Bhavik Patel Gold futures again have climbed above $1950 on optimism of a rate pause during the next upcoming FOMC meet. On Tuesday markets were pricing in a 60% chance of another 25-basis-point hike versus a 40% chance of a pause while on Thursday 70% chance of a pause against a 40% chance of a rate hike. The U-turn came on the back of some of the Fed member’s remarks stating Fed will look into the oncoming economic data before taking further decisions. The latest US manufacturing report revealed a contraction now the seventh consecutive month as new orders continued to drop in the number of new US jobless claims increased slightly last week which is suggesting that the economy is slowing and Fed may pause the rate hikes. Today’s US Non-Farm payroll data will be important as a strong labour market will again increase the chance of a rate hike and subsequently will see a sell-off in gold prices. The US debt ceiling saga is over so the next major trigger for gold is the next FOMC meeting. Gold in MCX is still looking bullish as momentum oscillator RSI_14 is above 52. Previously we recommended buying on dips around Rs 59200-59000 and this week, gold has bounced from the levels of Rs 59225. Above Rs 60500, gold will witness a breakout till Rs 61200. So immediate resistance is Rs 60500 while immediate support is Rs 59600. One can wait for Non-Farm payroll data to be released and subsequently, any correction around Rs 59600 is the ideal level to go long with an expected target of Rs 60500 and stop-loss of Rs 59200. (Bhavik Patel is a commodity and currency analyst at Tradebull Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)
The launched works involve rehabilitating the Galgamuwa Railway Station and upgrading the railway line from Maho to Anuradhapura, including additional tasks. Another project is the second phase of track rehabilitation from Maho to Omanthai (128 kms), funded by a $318 million Indian Line of Credit.
Transport Minister Gunawardena praised the efforts of Indian company IRCON in Sri Lanka and called for more cooperation in the railway sector. State Minister Shantha Bandara and officials from the Sri Lankan Ministry of Transport attended the event.
Railways is a priority for Indian assistance in Sri Lanka, with over $1 billion invested under five Indian Lines of Credit. IRCON has been involved in Sri Lanks since 2009. It has contributed to the modernisation of Sri Lanka Railways by reconstructing the entire railway line network in the Northern Province (253 Km) and upgradation of the Southern line (115 km), as well as improving safety through advanced signalling and telecommunication systems.
Despite Sri Lanka’s debt standstill in April 2022, India’s support under various Lines of Credit has continued.
(With PTI inputs)