Commodity Trading Tips for Gold by Kedia Commodity

Ajay Kumar Kedia 1 August 2013

Gold Gold yesterday settled down -1.02% at 28056 after investors avoided the commodity ahead of the Fed's statement on interest rates and monetary policy due out later in the day. Better-than-expected growth rates out of the U. S. pushed down prices as well. Investors avoided gold to see if the Federal Reserve makes any indication in its statement later on when stimulus programs could taper and eventually end. Stimulus programs such as the Fed's USD85 billion monthly asset-purchasing plan tend to weaken the dollar to spur recovery, making gold an attractive hedge, and talk of their dismantling can bruise the yellow metal. Data released earlier suggested the U. S. economy is on the mend and won't need monetary support for much longer, which kept gold lower. The report showed personal consumption grew 1.8% in the second quarter, above expectations for 1.6%. Consumer spending typically accounts for nearly 70% of U. S. economic growth. Separately, payroll processing firm ADP said non-farm private employers created 200,000 jobs in July, above expectations for an increase of 180,000. Meanwhile Gold importers in India, the world's biggest buyer of the metal, are refraining from fresh shipments on uncertainty in import policy, supporting premiums even as prices hit their highest level in more than three-and-a-half months. Technically market is under fresh selling as market has witnessed gain in open interest by 10.27% to settled at 12539 while prices down -289 rupee, now Gold is getting support at 27700 and below same could see a test of 27343 level, And resistance is now likely to be seen at 28545, a move above could see prices testing 29033.