Commodity Trading Tips for Gold by Kedia Commodity

Ajay Kumar Kedia 14 August 2013

Gold Gold settled down -0.14% at 28882 as Rupee strengthened marginally following the government's decision to hike import duties on gold and silver, but traders said the piecemeal approach failed to provide adequate confidence to the market. India hiked the import duty on gold to a record 10 percent and also raised excise duty on the metal, with the announcement coming after FM Chidambaram unveiled a slew of measures to narrow the CAD but without providing most of the specifics. While Comex Gold fell nearly 1%, snapping a four-day winning streak, weighed down by better US consumer spending data. Bullion came under pressure after a report by the Commerce Department showed US consumer spending rose in July at its fastest pace in seven months, an encouraging sign that could strengthen the case for the Fed winding down its economic stimulus program. The metal extended loses as the dollar raised to a one-week high against both the euro and the yen on the US retail data. While the metal largely ignored comments by Atlanta Fed President Dennis Lockhart, who said recent data does not present a clear picture of the economy, even as he did not rule out some kind of decrease next month in the $85 billion monthly pace of bond buys currently under way. Traders are closely focused on US economic data for signs of economic momentum as they anticipate that the US central bank will start reducing its stimulus in September if the economy is gaining traction. Holdings at SPDR Gold Trust grew by nearly 2 tonnes to 911.13 tonnes on Friday, the first increase since June 10. Technically market is getting support at 28623 and below same could see a test of 28365 level, And resistance is now likely to be seen at 29236, a move above could see prices testing 29591. GOLD