AppId is over the quota
Gold settled down -0.87% at 27614 as Gold on COMEX fall below the key $1300-level, after strong US trade data and comments by a Federal Reserve official stoked fears that the US central bank could start tapering its stimulus from next month. Moves in the gold price this year have largely tracked shifting expectations as to whether the US central bank would end its quantitative easing program sooner than expected. The US economy likely grew faster than initially reported in the Q2, thanks to a sharp narrowing in the trade deficit to its lowest in more than 3-1/2 years in June as exports touched a record high and imports fell. While the Fed will probably reduce its massive bond-buying stimulus programme later this year, and depending on economic data could do so as early as September, a top central bank official said on Tuesday. Also a dramatic drop in the recycling of gold jewellery was helping to rebalance the global bullion market, now in surplus, and could set the stage for a price recovery, the industry-funded WGC said. SPDR Gold Trust, said its holdings fell 0.23 percent to 915.04 tonnes on Tuesday. Investors have closely been looking out for US data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Any improvement in the US economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months. The precious metal is on track to post a loss of 23% on the year amid concerns the Fed will start to unwind its stimulus program by the year's end. Technically market is getting support at 27462 and below same could see a test of 27310 level, And resistance is now likely to be seen at 27866, a move above could see prices testing 28118.
Trading Ideas:
Gold trading range for the day is 27310-28118.
Gold dropped as data showing economic growth on both sides of the Atlantic dented the metal's appeal as a safe haven and triggered technical selling.
The figures showed U. S. trade deficit narrowed to a 3-1/2-year low in June, while British businesses boomed.
Gold importers in India remained on the sidelines for a third straight week due to policy uncertainty on shipments
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