Commodity Trading Tips for Gold by KediaCommodity

Ajay Kumar Kedia 22 July 2014

Gold Gold settled up 0.34% at 28087 as political tensions simmered after the shooting down of a passenger plane in eastern Ukraine last week and incessant fighting in Gaza. Bullion rebounded after last week's two-percent drop, as investors took profits after Thursday's strong rally when a Malaysian airliner over Ukraine was shot down and Israel launched a massive ground offensive into Gaza against Hamas militants. On Monday, reports that Ukrainian forces were moving into the eastern city of Donetsk near the crash site added to concerns that the conflict may escalate further. Other traders, however, suggested the jet disaster could help to bring about a diplomatic solution to the worst crisis between Russia and the West since the Cold War. On Monday, the expected handover of the black boxes, and reports by international investigators of improved access to the wreckage of the airliner, weakened a new case for broader sanctions against Russia laid out by Western leaders struggling to agree a united response. In the Middle East, Hamas's armed wing said on Sunday it had captured an Israeli soldier as fighting in Gaza led to the highest losses in a military offensive that has lasted nearly two weeks, with 100 Palestinians and more than a dozen Israeli soldiers killed. Gold was supported as U. S. stocks fell, following the sharpest moves in the equity indexes in the past three months during the two previous sessions. In a measure of investor sentiment, holdings of the SPDR Gold Trust, the world's largest gold-backed ETF, rose 1.8 tonnes to 805.14 tonnes on Friday. Technically market is under short covering and getting support at 27975 and below same could see a test of 27862 level, And resistance is now likely to be seen at 28209, a move above could see prices testing 28330.