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Gnanasekar.T

Gold futures ended lower on Friday, on profit-taking pushing it down from a new two-month high reached on the back of a falling dollar and expectation that China could diversify their swelling forex reserves into other currencies and gold. The averages in MACD have gone above the zero line of the indicator suggesting a bullish reversal.

Only a crossover of the averages below the zero line will signal bearishness again. Prices are above the short-term 8-day period EMA at $624 followed by the 34-day period EMA at $608. Therefore, look for COMEX gold to rise higher. Supports are at $623, 615 and 607. Resistances are at $640, 646 and 655.

(The author is a director at Commtrendz Research and in the advisory panel of Multi Commodity Exchange of India Ltd (MCX). The views expressed in this column are his own and not that of MCX. This analysis is based on the historical price movements and there is risk of loss in trading. He can be reached at gnanasekar_thiagarajan@yahoo.com.)

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