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Gold futures contract traded on the Multi Commodity Exchange (MCX) tumbled 3.7 per cent in the pervious week.
The majority of this fall occurred on Friday when the contract plunged 3.3 per cent with a downward gap to close the week at ₹25,863 per 10 gm.
The contract is now testing a key long-term support in the band between ₹25,500 and ₹26,000, a key trend deciding zone.
Medium-termA strong fall below this zone will reinforce the bearish momentum and the contract can extend its medium-term downtrend that has been in place since the March 2014 peak of ₹30,737.
In this scenario, it can decline to ₹24,500 and then to ₹24,000 in the medium-term. Nevertheless, an upward reversal from the above-mentioned support band can take the contract higher to ₹26,511 and then to ₹27,000 in the coming weeks.
The contract’s short-term trend is also down.
But it is testing a key support at ₹26,000 and reversing higher as the indicators in the daily chart are featuring in the oversold territory.
TargetsOn Monday, the contract was hovering around ₹25,945 as buying interest was evident. Traders can go long with a stop-loss at ₹25,755.
The targets are ₹26,300 and ₹26,511.
However, a fall below ₹25,755 can pull the contract down to ₹25,500 in the short-term.
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