Commodity Trading Tips for Gold by KediaCommodity

Ajay Kumar Kedia 13 May 2014

Gold Gold settled up 0.36% at 28628 rose on Monday as heightened tensions in Ukraine spurred some safe-haven buying, but a lack of strong physical demand could weigh on prices. Gold briefly rose above $1,300 an ounce after pro-Moscow rebel leaders in eastern Ukraine called for their region to become part of Russia after declaring victory in a weekend referendum on self-rule, a move that could drag the country into war. However, gold's failure to hold above key support of $1,300 an ounce and gains in U.S. equities, with the S&P 500 index moving within 1 percent of its record high, cut the metal's gains. The euro has lost more than 1 percent since Thursday when the European Central Bank said it was ready to take action next month should updated inflation forecasts merit it. A stronger dollar in turn makes bullion more expensive for holders of other currencies. Meanwhile, subdued buying in the physical markets is also hurting sentiment towards gold. Friday data showed that gold imports in India, the second-biggest consumer of bullion, fell 74 percent in April to $1.76 billion from a year earlier due to import restrictions. While in top buyer China, local premiums over the global benchmark have climbed to about $3 an ounce after trading at a discount for most of the last two months on weak demand. But they are still much lower than the over-$20 premiums seen earlier in the year. Technically market is under fresh buying as market has witnessed gain in open interest by 2.79% to settled at 10112 while prices up 103 rupee, now Gold is getting support at 28386 and below same could see a test of 28144 level, And resistance is now likely to be seen at 28834, a move above could see prices testing 29040.