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The gold futures contract traded on the Multi Commodity Exchange (MCX) has risen sharply on Saturday. The government leaving the import duty unchanged in the Budget on Saturday triggered this rise.
The MCX-gold futures contract was consolidating between ₹26,000 and ₹26,350 per 10 gm most part of last week. The recent sharp rise has witnessed a bullish breakout above ₹26,350 and has turned the short-term outlook bullish.
The contract is currently trading near ₹26,675.
On the global front, spot gold ($1,216 per ounce) price has reversed sharply higher from the low of $1,190 breaching the psychological resistance at $1,200. The outlook is bullish and the yellow metal can rise to $1,230 and $1,240. A rise in the global spot gold price can aid the MCX-gold futures contract to rise further higher. Immediate supports for the contract are at ₹26,565 and ₹26,450. Resistance is at ₹27,000.
A strong break above this hurdle can take the contract higher to ₹27,600 in the coming week.
Traders with a short-term perspective can go long. Stop-loss can be kept at ₹26,300 for the target of ₹27,250.
However, the short-term outlook for the MCX-gold futures contract will turn bearish only on a strong break below ₹26,000. The next target will be ₹25,500. But such a fall looks unlikely at the moment.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
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