Commodity Trading Tips for Gold by KediaCommodity
Gold prices ended down marginally by -0.29% to settled at 31310 as a stronger dollar and weaker crude oil triggered profit-taking after bullion's recent sharp rally boosted by stimulus by central banks around the world. Support seen on MCX as rupee weakness following weakness in local equities amid fresh dollar demand from importers. Firm dollar overseas also weighed on the rupee while sustained capital inflows capped the rupee fall to certain extent, rupee closed with a weakness of -0.33% at 53.75. The metal was weighed down by gains in the US dollar after data showed new US home sales held near 2year highs in August and prices vaulted to their highest in more than five years. A Fed board member blasted a recent Fed decision to stimulate the economy with monetary easing measures, which also pushed gold down. An IMF report revealed that central banks increased their holding of the precious metal in both July and August, with South Korea raising its gold holdings by nearly 16 tonnes in July. Central banks continue to stimulate their economies with monetary easing measures, which was bullish for gold as well. Solid data out of the US sent the metal falling as investors stocked up on dollar positions. Now technically market is getting support at 31177 and below could see a test of 31044 level, And resistance is now likely to be seen at 31471, a move above could see prices testing 31632.
Trading Ideas:
Gold trading range for the day is 31044-31632.
Gold fell on pressure from stronger dollar and weaker tone to stocks markets and other commodities combined with profit-taking
Spanish government bond yields broke above 6 percent after developments in Spain dampened expectations
Holdings of SPDR Gold Trust dropped over 10 tonnes from record high of 1,331.331 tonnes to 1,320.777 tonnes