Comments
Global spot gold prices ($1,194/ounce) advanced 2 per cent amidst volatility last week.
The yellow metal is now testing a key resistance around $1,200 levels. A conclusive breakthrough of this immediate resistance level can take it higher to $1,220 levels initially. If the bullish strength continues, spot gold price can extend its rally to $1,250 levels with a minor pause around $1,220 levels.
However, a fall below the immediate key support at $1,180 can pull it down to $1,160 or $1,140 levels in the short term.
On the domestic front, gold futures traded on the Multi Commodity Exchange (MCX) surged 2 per cent last week to close at ₹26,351 per 10 gm.
The contract is witnessing some selling pressure and fell marginally to hover around ₹26,241 around 8 pm on Monday. The contract is facing a significant resistance at ₹26,500 levels. An emphatic break of this barrier will take the contract higher to ₹27,000 and then to ₹27,500 levels in the short term.
Stop-loss can be placed at ₹26,250. Traders with a short-term perspective should tread with caution as long as the contract trades below ₹26,500 levels. Inability to surpass the ₹26,500 levels will keep the metal trading in a wide band between ₹25,500 and ₹26,500 levels. On the downside, a conclusive breakthrough of the significant support at ₹25,500 levels will reinforce bearish momentum and drag the contract down to ₹25,000 levels in the coming weeks.
Note: The recommendations are based on technical analysis. There is risk of loss in trading.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.