Commodity Trading Tips for Gold by KediaCommodity

Ajay Kumar Kedia 9 January 2014

Gold Gold settled marginally down by -0.13% at 28796 after losses in the last two sessions, as strong U. S. jobs data took the sheen off the metal's safe-haven appeal and with investors eyeing more data through the week for clues on the strength of the economy. Minutes of the Fed's Dec. 17-18 policy meeting, released on Wednesday, showed many members of the policy-setting FOMC wanted to proceed with caution in trimming the central bank's $85 billion monthly asset purchases. While Payroll processing firm ADP said in a report earlier that non-farm private employment rose by a seasonally adjusted 238,000 in December, easily surpassing expectations for an increase of 200,000. November's figure was revised up to a gain of 229,000 from a previously reported increase of 215,000. While not viewed as a reliable guide for the government jobs report due on Friday, January 10, it does give guidance on private-sector hiring. Investors were now turning their attention to the minutes of the Fed's December meeting, due for release later Wednesday, for indications on the possible timing of further reductions in the central bank's stimulus program. Some market participants believe the central bank will likely taper its bond purchases by an additional USD10 billion in each of its next seven meetings before ending the program in December 2014, amid indications of an improving U. S. economy. While SPDR Gold Trust, said its holdings fell 1.50 tonnes to 793.12 tonnes on Wednesday. Technically market is under long liquidation as market has witnessed drop in open interest by -2.77% to settled at 8473 while prices down -38 rupee, now Gold is getting support at 28686 and below same could see a test of 28575 level, And resistance is now likely to be seen at 28893, a move above could see prices testing 28989.