Commodity Trading Tips for Gold by KediaCommodity

GoldGold prices traded in the range and settled at 31924 as investors sold gold to await the outcome of a two-day monetary policy meeting at the Fed that begins Wednesday. The precious metal soared after the US government released a very poor August jobs report that fueled already building sentiments the Fed is planning to stimulate the US economy, this week. The US Bureau of Labor Statistics reported on Friday that the US economy created a net 96k nonfarm payrolls in August, well below market calls for 125k jobs. The jobs report fueled already growing sentiment that the Fed will roll out a QE3 at its 2-day monetary policy meeting. Under QE, the Fed buys assets such as Treasury holdings held by banks, pumping the economy full of fresh liquidity in a way that pushes down interest rates to encourage investing and hiring. Such accommodative policies tend to weaken the dollar by design, which sends the greenback's traditional hedge, gold, rising. Should the Fed announce easing measures later this week as many think, the price could soar though investors sold in the meantime to await official word from the US central bank. Now technically market is in overbot as RSI for 18days is currently indicating 81, and getting support at 31836 and below could see a test of 31747 level, And resistance is now likely to be seen at 32028, a move above could see prices testing 32131.

Trading Ideas:

Gold trading range for the day is 31747-32131.

Gold settled flat on profit booking after disappointing U.S. payrolls data boosted hopes that FED could unveil new stimulus

Gold imports by China from Hong Kong rose to 75,842 kilograms (about 76 metric tons) in July

Holdings of gold-backed exchange-traded funds rose to an all-time high of 72.492 million ounces