Commodity Trading Tips for Gold by KediaCommodity

Ajay Kumar Kedia 24 July 2014

Gold Gold settled down at 27882 slipped for a second straight session to end slightly lower on Wednesday, with investors opting for riskier assets tracking rising global equity markets. Nonetheless, the losses were limited due mainly to the escalating tensions in Gaza where fighting between Israel and Hamas rages on unabated. While persisting worries about the situation in Gaza and Ukraine support the yellow metal, optimism about strong corporate earnings appears to be limiting its upside. Meanwhile, reports from Ukraine say pro-Russian rebels have shot down two Ukrainian fighter jets, close to the location of the Malaysian passenger plane crash in eastern Ukraine late last week. On Tuesday, gold futures ended lower, as investors chose riskier assets on the back of strong global equity markets. The escalating tension in Gaza and Ukraine also helped gold futures to limit losses. In economic news, euro area consumer confidence deteriorated for a second straight month in July, preliminary data from the European Commission showed Wednesday. The flash consumer confidence index for Eurozone fell to -8.4 from -7.5 in June. Spot gold has traded within its narrowest monthly range in nearly five years so far in July, as strong equity markets divert investment interest from gold. Holdings of SPDR Gold Trust, edged up to 804.84 tons on Wednesday, from its previous close of 803.34 tons on Tuesday. Technically market is under long liquidation as market has witnessed drop in open interest by -2.22% to settled at 7259 while prices down -13 rupee, now Gold is getting support at 27825 and below same could see a test of 27767 level, And resistance is now likely to be seen at 27968, a move above could see prices testing 28053.