Commodity Trading Tips for Gold by Kedia Commodity

Ajay Kumar Kedia 13 August 2013

Gold Gold yesterday settled up 3.64% at 28923 as series of news hit and supported the prices, Gold shot up sharply after traders and consumers rushed to book the Gold, amid rumour of a further two per cent increase in import duty. Also Rupee weakened despite the central bank's third round of cash tightening measures announced last week after FM's measures to contain the current account deficit were seen lacking specifics. Meanwhile Comex Gold rose nearly 2%, hitting its highest in nearly three weeks as strong Chinese gold consumption and an inflow to gold-backed ETF fuelled hopes of resurgent physical and investment buying. Market sentiment improved after data showed that holdings in the SPDR Gold Trust, increased for the first time since June on Friday. Gold's gains accelerated after breaking above a key technical resistance level close to the $1335-level, triggering a flurry of automatic buy orders. Meanwhile, data from the SPDR Gold Trust Fund showed assets in the world's largest gold ETF on Friday increased 1.8mts to 911.13mts, marking the first increase since June 10. Now investors have closely been looking out for US data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Any improvement in the US economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months. An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies. Technically market is getting support at 28640 while resistance is now likely to be seen at 29305.