Commodity Trading Tips for Gold by KediaCommodity

Ajay Kumar Kedia 8 July 2014

Gold Gold settled down -0.24% at 27490 slipped lower, after last week's strong US employment data dashed the case for owning the precious metal. In some positive economic news last week, employment in the U. S. rose much more than anticipated in June, with unemployment rate dropping to its lowest level in almost six years, a Labor Department report showed Thursday. Elsewhere, a Commerce Department report showed U. S. trade deficit to have narrowed more than expected in May, with value of exports rising and value of imports falling. Meanwhile, the European Central Bank kept its interest rates unchanged after its monthly policy meeting on Thursday, even though the region's economy continues to lag. Nevertheless, geopolitical concerns over developments in Iraq and Ukraine continued to be a matter of concern, helping the precious metal stem and limit losses to a large extent. Physical demand in top gold consumer Asia has also been weak as the metal is holding above $1,300. Many are waiting for a drop in prices before making any purchases. Meanwhile, gold is still seeing some safe-haven bids from geopolitical tensions in the Middle East and Ukraine. Also SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 1.8 tonnes to 798.19 tonnes on Monday. Investors turned their attention to Wednesdays’ minutes of the Fed’s June meeting, with few other major U. S. economic reports on the calendar. Technically market is under long liquidation as market has witnessed drop in open interest by -0.16% to settled at 8687 while prices down -67 rupee, now Gold is getting support at 27408 and below same could see a test of 27325 level, And resistance is now likely to be seen at 27548, a move above could see prices testing 27605.