Commodity Trading Tips for Gold by KediaCommodity

Ajay Kumar Kedia 23 July 2014

Gold Gold settled down -0.68% at 27895 ended lower on Tuesday, tracking strong global equity markets as investor opted for riskier assets, amid escalating tensions in Gaza. Some upbeat economic data from the U.S. showed existing home sales rising even as inflation increased, with speculations the Fed rate hike may come anytime soon. Nonetheless, the downside is limited due to persisting concerns over the situation in Gaza. Despite attempts to work out a cease-fire, the Israeli forces are reportedly engaged in some intense battle with Hamas. Meanwhile, pro-Russian rebels in eastern Ukraine handed over the flight recorder boxes of the Malaysian Airlines passenger jet that was shot down earlier last week. On Monday, gold prices made moderate gains with the conflict between Israeli military and Hamas continued to rage, with casualties mounting on both sides. In economic news from the U.S., the inflation report from the Labor Department said consumer prices rose a seasonally adjusted 0.3 percent in June on higher gasoline prices, after rising 0.4 percent in May in line with forecasts. With the rise in inflation due largely to volatile gas prices, it now remains to be seen as to whether the Federal Reserve would take a decision to hike interest rates anytime sooner than forecast. Gold prices also slipped as investors extended the profit-taking that emerged at the end of last week after six straight weeks of gains. Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 1.8 tonnes to 803.34 tonnes on Monday. Technically market is under long liquidation as market has witnessed drop in open interest by -5.8% to settled at 7424, now Gold is getting support at 27775 and below same could see a test of 27656 level, And resistance is now likely to be seen at 28050, a move above could see prices testing 28206.