Commodity Trading Tips for Gold by KediaCommodity

Ajay Kumar Kedia 17 January 2014

Gold Gold settled flat at 29034 largely traded flat in the range of 28950-29150 after two consecutive days of losses, as data showing a strengthening U.S. labor market and improving regional manufacturing activity dampened buying interest. A small gain in the core U.S. Consumer Price Index in December also weighed down on gold's inflation-hedge appeal. Thursday's economic reports showed the number of Americans filing new claims for unemployment benefits fell for the second consecutive week last week, while Mid-Atlantic manufacturing activity accelerated in December. Investors mostly stayed on the sidelines, reflected in a narrow $12 trading range in spot gold. While the Labor Department said the so-called core CPI, which stripped out the volatile energy and food components, rose only 0.1 percent, leaving its increase over the past 12 months at 1.7 percent, where it has now been for four consecutive months. The Fed targets 2 percent inflation, although it tracks a gauge that tends to run a bit below CPI. U.S. jobless claims also fell, suggesting a sharp step-down in job growth showed in the December nonfarm payrolls report was likely to be temporary. Now markets are closely watching data to gauge whether the U.S. Federal Reserve will have enough evidence of economic recovery to continue unwinding its bond-buying stimulus over 2014. The next meeting of the Federal Open Market Committee is on Jan. 28-29. Technically market is under short covering as market has witnessed drop in open interest by -4.07% to settled at 8044 while prices up 15 rupee, now Gold is getting support at 28945 and below same could see a test of 28855 level, And resistance is now likely to be seen at 29133, a move above could see prices testing 29231.