The outlook for the gold futures contract traded on the Multi Commodity Exchange (MCX) is bullish. The contract has surged over 2 per cent in the past week decisively breaching the psychological resistance level of ₹27,000 per 10 gm. Thanks to the strong rise in the global spot gold ($1,225/ounce) which has helped the domestic price to move higher along with it. Weak dollar has pushed the global price to move comfortably beyond the $1,200 mark. The outlook is bullish with strong supports at $1,212 and $1,200. The price can move higher to the target of $1,245 in the coming week. Such a rally could aid the MCX-gold futures contract also to move higher as it moves in tandem with the global spot gold price. The contract is currently trading near ₹27,620. Support is at ₹27,300. The sharp reversal from the low of ₹27,246 on Friday suggests that the contract attracts fresh buying interest at lower levels. A rise to ₹28,150 looks likely this week. Short-term traders can go long. Stop-loss can be kept at ₹27,250 for the target of ₹28,100. Intermediate dips to ₹27,500 and ₹27,300 can be used to accumulate long positions.

The level of ₹28,150 is a key resistance to watch. A strong break above this level will increase the bullish momentum and take the contract further higher to ₹28,450. But, if the contract fails to breach above this hurdle then a pull back move to ₹27,500 is possible.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading

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