Commodity Trading Tips for Gold by KediaCommodity

Ajay Kumar Kedia 4 September 2013

Gold Gold settled up 4.16% at 34439 as rupee fell below 68 to the dollar to near record lows on Tuesday after Standard & Poor's said there was a more than one-in-three chance of a ratings downgrade for the country and as fears of war in the Middle East roiled global markets. In the physical market, gold traders awaited operational guidelines from the customs department, after a five week halt in shipments, which drove premiums higher. While hinting at more measures to curb gold imports, PM Manmohan Singh, admitted in Parliament on August 30th that the current account deficit had gone up sharply and that it was affecting the value of the rupee. In his statement on the current economic situation he made several references to gold that rung alarm bells across the country. Support also seen from the various International factors also where Comex Gold climbed 1.4 percent after President Barack Obama won the backing of two top Republicans in Congress in his call for limited U. S. strikes on Syria to punish President Bashar al-Assad for suspected use of chemical weapons against civilians. Bullion prices rose to within striking distance to their 3-1/2-year high after John Boehner, Republican speaker of the U. S. House of Representatives, and House Majority Leader Eric Cantor both pledged support for military action. While Investors often move into gold as a safe haven in times of geopolitical tension. Also SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.20 percent to 919.23 tonnes on Tuesday. Technically market is under fresh buying as market has witnessed gain in open interest by 3.76% to settled at 8583 while prices up 1375 rupee, now Gold is getting support at 33421 and below same could see a test of 32403 level, And resistance is now likely to be seen at 34976, a move above could see prices testing 35513.