Commodity Trading Tips for Gold by KediaCommodity

Ajay Kumar Kedia 25 July 2014

GOld Gold settled down -0.92% at 27626 slipped for a third straight session to end sharply lower below the psychological level of $1,300 an ounce for the first time in a week on Thursday as robust economic data from China and the euro zone deterred investors from buying into safe haven assets like the metal. Strong earnings results and upbeat first-time claims for unemployment benefits data from U. S. prompted investors to opt for riskier assets. Initial jobless claims in the U. S. unexpectedly dropped to their lowest level in over eight years in the week ended July 19, after reporting a modest fall in claims in the previous week, a Labor Department report showed Thursday. On Wednesday, gold futures ended slightly lower, as investors opted for riskier assets, tracking strong corporate earnings. Nonetheless, concerns over the escalating tensions in Gaza limited gold's losses. All that diverted investor attention from the clashes in Gaza between Hamas and Israel, as well as the tensions in the Crimean region after the sanctions on Russia and the downing of a Malaysian passenger jet, that sent bullion rallying last week. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved up to 805.44 tons from its previous close of 804.84 tons on Wednesday. China's net gold imports from main conduit Hong Kong fell to a 17-month low in June as a weaker yuan and adequate stocks curbed fresh purchases from the world's biggest bullion consumer. Technically market is under long liquidation as market has witnessed drop in open interest by -12.34% to settled at 6363 while prices down -256 rupee, now Gold is getting support at 27536 and below same could see a test of 27445 level, And resistance is now likely to be seen at 27784, a move above could see prices testing 27941.