Commodity Trading Tips for Gold by KediaCommodity

Ajay Kumar Kedia 25 August 2014

Gold Gold settled up 0.24% at 27813 as support seen after U. S. equities slipped, but gains were limited after Federal Reserve Chair Janet Yellen said U. S. labor markets remain hampered by the effects of the Great Recession. For the week, gold lost about 3 percent, as speculation over an early interest rate hike following the latest Fed minutes earlier this week weighed heavily on the yellow metal. In a speech at a central banking conference in Jackson Hole, Wyoming, Yellen said the U. S. central bank should move cautiously in determining when interest rates should rise, as economic disruption of the last five years has left millions of workers sidelined, discouraged, or stuck in part-time job. Physical demand for gold in major consumers China and India remained weak. Analysts, however, expected buying from India to increase heading into the festival and wedding season, when it is traditionally considered auspicious to buy the metal. "More jobs have now been created in the recovery than were lost in the downturn, with payroll employment in May of this year finally exceeding the previous peak in January 2008. Job gains in 2014 have averaged 230,000 a month, up from the 190,000 a month pace during the preceding two years," Yellen said in prepared remarks of her speech. "The unemployment rate, at 6.2 percent in July, has declined nearly 4 percentage points from its late 2009 peak. Over the past year, the unemployment rate has fallen considerably, and at a surprisingly rapid pace." Technically market is under short covering as market has witnessed drop in open interest by -4.27% to settled at 9363, now Gold is getting support at 27724 and below same could see a test of 27636 level, And resistance is now likely to be seen at 27890, a move above could see prices testing 27968.