Commodity Trading Tips for Gold by KediaCommodity

Ajay Kumar Kedia 28 July 2014

Gold Gold settled up 1.13% at 27938 as heightened tensions between Russia and the West over Ukraine prompted speculators to buy back their bearish bets ahead of the weekend. For the week, however, bullion dropped, as encouraging recent U.S. economic indicators lessened the metal's safe-haven appeal. Gold prices climbed as Russia said the United States was trying to influence international opinion through unfounded insinuations and anti-Russian rhetoric over the crisis in Ukraine, while the Pentagon said the transfer of rocket systems from Russia to Ukrainian separatists appeared to be imminent. Data on Chinese gold imports released by Hong Kong’s statistics department on Thursday showed only 40.5 tons of gold were imported on a net basis from Hong Kong to China in June, down 23% from May and 61% year-on-year. That’s the fourth straight month of declines and the lowest level in 17 months. While some gold imports via a free-trade zone established in Shanghai might not be captured in the figures, it still appears that overall demand is much weaker than had been anticipated. The World Gold Council’s forecasts of Chinese gold demand, which were issued at the beginning of the year and envisaged demand being on a similar scale in 2014 as it was in 2013, meanwhile appear ambitious. Russia and Turkey lifted their gold holdings in June as both countries increased their bullion reserves for a third consecutive month, data from the International Monetary Fund showed. The market awaited the release of July U.S. non-farm payrolls and the Federal Open Market Committee meeting, both scheduled for this week. Technically now Gold is getting support at 27737 and below same could see a test of 27537 level, And resistance is now likely to be seen at 28051, a move above could see prices testing 28165.