Commodity Trading Tips for Gold by KediaCommodity

Ajay Kumar Kedia 13 November 2013

Gold Gold settled up 0.89% at 30411 despite of fall on COMEX as rupee fell to a near nine-week low, extending its losses for a fifth session, on the back of continued greenback demand from importers amidst a strengthening U. S. currency in global markets. While Comex Gold prices dropped to settled USD1,265.40 amid ongoing expectations for the Federal Reserve to begin winding down monetary stimulus programs in the near future, possibly next month. Gold has lost nearly 4 percent over the past four sessions, as last week's surprisingly strong October U. S. jobs growth data boosted speculation that the Fed will taper its $85 billion-a-month bond purchases by the end of the year. Monthly bond purchases aim to spur recovery by driving down long-term interest rates, weakening the dollar in the process, thus making gold an attractive hedge, and talk of their dismantling has the opposite effect. Last week, the Bureau of Labor Statistics reported that the U. S. economy added 204,000 jobs in October, far surpassing expectations for a 125,000 increase. Official data also revealed that the U. S. economy grew 2.8% on year in the third quarter, well beyond expectations for 2.0% growth. Uncertainty over the timing of a Federal Reserve announcement to begin tapering monthly bond purchases had little effect on gold on Tuesday. Many expect the U. S. central bank to remain in standby mode until Janet Yellen takes the helm and holds her first policy meeting in March, though investors traded gold on the notion that be it in December or March, stimulus tools are on their way out. Technically market is getting support at 30139 and below same could see a test of 29868 level, And resistance is now likely to be seen at 30563, a move above could see prices testing 30716.