Commodity Trading Tips for Gold by KediaCommodity

Ajay Kumar Kedia 20 January 2014

Gold Gold settled up 0.8% at 29265 as weakness in U.S. equities, strong fund buying and Asian physical demand lifted bullion prices. Gold's recent rise has been supported by a drop in equities early in 2014 following a record run-up in stocks last year. Gold rose on Friday against the headwinds of a stronger dollar after fresh U.S. data supported the view the world's largest economy is improving enough to keep the Federal Reserve's stimulus-reducing measures on track. Data showed U.S. industrial output rose at its fastest clip in 3-1/2 years in the fourth quarter as factory activity closed out the year on a strong note, a sign of the economy's brightening prospects. In China, physical gold premiums on the Shanghai Gold Exchange rose on Friday. Buying from China, the world's biggest gold consumer, has been robust in recent weeks ahead of the Lunar New Year holiday on January 31. The market was surprised by news of Deustche Bank withdrawing from gold and silver benchmark setting, or fixing, as German regulators investigate suspected manipulation of precious metals prices by banks. SPDR gold trust holding gained by 7.49 tonnes i.e. 0.95% to 797.05 tonnes from 789.56 tonnes. The Fed's bond-purchasing program, in effect since September of 2012, suppresses long-term interest rates to spur recovery, weakening the dollar in the process and making gold an attractive hedge. Data bolstered the dollar earlier though gold posted gains of its own, mainly on views by some that the commodity is oversold. Now Gold is getting support at 29014 and below same could see a test of 28763 level, And resistance is now likely to be seen at 29413, a move above could see prices testing 29561.