Commodity Trading Tips for Gold by Kedia Commodity

Ajay Kumar Kedia 25 July 2013

Gold Gold yesterday settled down -1.21% at 27240 as signs of continued economic recovery both in the United States and Europe prompted funds to exit the bullion market after prices gained earlier in the day. The metal has climbed nearly 6 percent in the last four trading days, its biggest such rise since October 2011, after assurances from the Federal Reserve that any tapering of its gold-friendly quantitative easing policy would depend on data. New U. S. home sales vaulted to a five-year peak in June, while private industry in the euro zone expanded for the first time in more than a year in July. In contrast to the improving U. S. and European economic outlook, signs of slowing Chinese growth allow more room for policymakers to stimulate the world's second-largest economy, increasing gold's inflation-hedge appeal. Goldman Sachs is sticking to its average forecast of $1,413 for an ounce of gold this year as it does not see sharp reductions in U. S. Federal Reserve stimulus, after fears of such cuts drove bullion prices to near three-year lows recently. China's overall PMI of business conditions fell in June to its weakest since August 2012, and its employment sub-index slid to the lowest since the depths of the global financial crisis in early 2009. Chinese growth has slowed in nine of the past 10 quarters. Traders are watching U. S. data particularly carefully at present for any clues on the outlook for Fed monetary policy. Federal Reserve officials have said they will pay close attention to economic data when deciding when to taper and eventually close stimulus programs, though they have added they won't follow specific timetables. Now Gold is getting support at 27064 and below same could see a test of 26887 level, And resistance is now likely to be seen at 27567, a move above could see prices testing 27893.