Gold extended last week's 7-percent drop on Monday, hurt by a stronger dollar, worries over an early end to Federal Reserve stimulus and fears of a cash crunch in China. But the fall in prices failed to revive physical demand as much as when bullion tumbled its most in 30 years in April.
Investors also continued to dump holdings in gold exchange-traded funds, despite the metal's usual appeal as a so-called safe-haven asset.
Bullion is down 23 percent for the year, heading for its worst annual performance since 1981. Physical demand in the top two gold consumers India and China was muted, unlike the mid-April sell-off in gold which prompted a frenetic rush, pushing up premiums and tightening supplies.
In the coming week, investors will be closely watching U.S. data on durable goods orders, jobless claims and consumer confidence for signs that the economic recovery is on track. Any improvement in the U.S. economy could scale back expectations for further easing, putting upward pressure on U.S. yields and boosting the dollar.
Indian demand has been hurt by new government rules on financing and imports, as well as a weak rupee. Indian gold is trading in 26750 points low in the market with low of 270 Rs today. While silver is, in the mcx exchange, having loss of 620 Rs from its opening price while its current trading price is 40966 Rs in the market.
Crude oil 19th july future contract also is trading in 5589 Rs with low of 24 rupees in its price money. Natural Gas is also low by INR 2.90 in the Indian market while its global market price is low by dollar $0.0095 in the international exchange.
Trading Tips for Gold Silver and Other Commodities
SELL GOLD AUG BELOW 26720 TARGETS 26650/26600/26500 STOP LOSS 26780
SELL SILVER JULY BELOW 40900 TARGETS 40750/40600/40500 STOP LOSS 41050
SELL CRUDE OIL BELOW 5580 TARGETS 5565/5550/5540 STOP LOSS 5600
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