Showing posts with label Bullion. Show all posts
Showing posts with label Bullion. Show all posts

Wednesday, 12 November 2014

Gold weakness, market under long liquidation

Gold is getting support at 25694 and below same could see a test of 25599 level, and resistance is now likely to be seen at 25920, a move above could see prices testing 26051.

MUMBAI: Gold settled down -0.03% at 25788 traded in the range as no key U.S. economic data this week, bullion investors looked to the currency market for trading cues. The yellow metal gained 2 percent on Tuesday as the dollar fell and physical demand picked up after bullion prices slid to a 4-1/2 year low last week.

While Holdings of SPDR Gold Trust, edged down to 724.46 tons on Wednesday from its previous close of 725.36 tons on Tuesday. Technically market is under long liquidation as market has witnessed drop in open interest by -0.63% to settled at 7901 while prices down -8 rupee, now Gold is getting support at 25694 and below same could see a test of 25599 level, and resistance is now likely to be seen at 25920, a move above could see prices testing 26051.

Trading Ideas:-
  • Gold trading range for the day is 25599-26051.
  • Gold traded in the range and extended losses as the Federal Reserve prepares to raise interest rates next year, strengthening the dollar.
  • Traders will be focusing on the upcoming Swiss vote on Nov 30 to decide on higher requirement of gold reserves to be held by the central bank.
  • Slightly weaker dollar supported gold, fairly steady global equity markets amid expectations of more stimulus from the ECB weighed on the metal.