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The gold futures contract traded on the Multi Commodity Exchange has tumbled for the third consecutive week.
The contract fell 1.5 per cent last week and is down over 5 per cent for the month.
A sharp fall in the global gold price is keeping the domestic price under pressure.
The global spot gold ($1,216/ounce) fell 1.1 per cent last week.
The outlook is bearish. Key resistances are at $1,230 and $1,240 which can restrict any intermediate rallies.
Gold can extend its fall to test the psychological $1,200 level this week.
A decline below $1,200 can drag it further lower to $1,185 which is key support level to watch for.
On the domestic front, the MCX-gold is also expected to remain under pressure. Resistances are at ₹26,500 and ₹26,700 per 10 gm.
Rallies to these resistances could attract fresh selling interest coming into the market. The contract can fall to test the psychological support level of ₹26,000 immediately.
A fall below this support can take it further lower to ₹25,750 and it will leave MCX-gold in the danger of targeting ₹25,000 in the coming weeks.
Traders can go short with a stop-loss at ₹26,800 for the target of ₹25,850.
Intermediate rallies to ₹26,500 and ₹26,700 if seen can be used to accumulate more short positions.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
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