Commodity Trading Tips for Gold by KediaCommodity

Ajay Kumar Kedia 6 December 2013

Gold Gold settled down -1.31% at 29205 tracking fall in Comex Gold settled down by 1.47% at 1224.85 following a short-covering rally in the previous session, weighed down by concerns the U. S. Federal Reserve could soon begin tapering its monetary stimulus on strong economic data. Bullion prices rose the most in over a month on Wednesday despite strong data on U. S. private-sector hiring and service industry growth in the run up to the nonfarm payroll data on Friday. The short-covering gains came after gold hit fresh five-month lows for three straight sessions. While U. S. GDP increased at a seasonally adjusted annual rate of 3.6% in the three months to September, well above expectations for growth of 3.0% and up from a preliminary estimate of 2.8%, according to Commerce Department data released earlier. Separately, the U. S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 23,000 to a seasonally adjusted 298,000. Also Government data also showed that U. S. factory orders fell 0.9% in October, the numbers kept expectations going that the Federal Reserve remains on course to begin tapering its USD85 billion in monthly asset purchases, which have bolstered gold prices for a year now, likely in early 2014. Gold also fell after the ECB said it was its holding benchmark interest rate at 0.25%, as expected. ECB President said monetary policy will remain accommodative for as long as necessary and added that interest rates are likely to remain at current or lower levels for an extended period of time. Technically market is getting support at 28931 and below same could see a test of 28657 level, And resistance is now likely to be seen at 29501, a move above could see prices testing 29797.