Gold jumps up on technical demand, soft U.S. housing data

                     Gold prices shot up in U.S. trading on Monday amid technical demand after investors began to view the commodity as oversold and rebalanced support levels higher than those from recent weeks.

Softer-than-expected housing numbers in the U.S. also pushed up prices.

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On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 1.94% at USD1,422.65 a troy ounce in U.S. trading on Monday, up from a session low of USD1,403.55 and down from a high of USD1,438.35 a troy ounce.

Gold futures were likely to test support USD1,403.55 a troy ounce, the earlier low, and resistance at USD1,590.05, the high from April 9.

Gold prices have dropped in recent months amid concerns that a more robust recovery in the U.S. will prompt the Federal Reserve to soon wind down stimulus tools, which weaken the dollar to spur investing and recovery.

Crude ignores U.S. home sales, gains on G20 green light on Japan easing

              Crude Oil prices rose on Monday after investors shrugged off disappointing housing data in the U.S. and applauded a G20 decision to voice no opposition to Japan's monetary easing measures.

On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded up 0.91% at USD89.07 a barrel on Monday, off from a session high of USD89.42 and up from an earlier session low of USD87.72.

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Japan has rolled out massive monetary stimulus measures to steer the country away from deflationary decline and more towards growth, though G20 officials recently said they did not oppose such measures.

Monetary stimulus tools tend to weaken currencies, though industrialized nations said they won't oppose Japan's policies after concluding the country is not easing policy to give itself an unfair advantage in global trade markets.

Gold futures surge 2% to hit 1-week high on technical buying

            Gold futures were higher for the fourth consecutive day on Monday, moving further off last week’s two-year low as a bout of technical buying kicked in after prices broke above a key resistance level. 

Some bargain buying and indications of mounting physical demand in Asia and the U.S. also contributed to gains.

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On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,424.15 a troy ounce during European morning hours, up 2.1% on the day.

Comex gold prices rose by as much as 2.3% earlier in the session to hit a daily high of USD1,427.15 a troy ounce, the strongest level since April 15. Comex gold fell to a 27-month low of USD1,322.25 an ounce on April 16.

Crude Oil Range Bound Ahead Of Chinese Data

                     Crude oil is trading at 88.69 up by 42 cents as traders await tomorrow’s HSBC Chinese PMI data. Last week disappointing Chinese data sparked a global commodities sell off seeing gold tumbled the most in 30 years while crude oil fell close to $6.00 in a single day. Crude oil climbed back above $88 per barrel, as traders mulled the prospects for an output cut from the OPEC Countries after a recent slump in prices left oil with a loss of almost 4% on the week.

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Even after posting the biggest gain since March 26, a decline in oil prices is expected to carry on throughout the week amid lingering worries about higher crude supplies in the United States and signs of lower global demand. Most importantly, the trading sentiment towards commodities and energy precisely was strongly rippled last week by a round of downbeat projections for global oil demand, with lower growth for 2013 predicted by the IEA, EIA and the OPEC.

The International Monetary Fund trimmed its global economic growth forecast for 2013. The group has cut growth in the U.S., the world`s top oil consumer to 1.9 percent from 2 percent. China, the world`s second-top consumer, was cut to 8 percent from 8.2 percent.

Gold rises as hedge funds boost long bets

                    Gold futures are trading higher in the early part of Monday’s Asian session as some hedge funds and other speculators are seen increasing their long bets on the yellow metal despite last week’s dismal performance. 

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery advanced 0.66% to USD1,404.85 per troy ounce in Asian trading Monday. The good start to the week comes after bullion plunged in the first two trading days of last week and finished down 5.4% for the week, good for the fourth weekly slide in a row. 

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Gold prices were likely to find support at USD1,322.25 a troy ounce, the low from April 16 and a 27-month low and near-term resistance at USD1,425.55, Friday’s high. 

Fund managers and other traders raised their net long exposure to gold by 9.8% to 61,579 futures and options in the week ending April, according to data from the U.S. Commodities Futures Trading Commission.