Gold price on the global market has retreated after recording a high of $1,332/ounce on July 1. Good employment numbers that turned the dollar stronger pulled the yellow metal price lower.

Gold will now have to breach its key resistance at $1,330 in order to bring back the bulls into the market and take the commodity higher to $1,350 levels. While a stay below this level, the probability looks high for the commodity to decline to test its key support at $1,300 in the coming week.

On the domestic front, the gold futures contract traded on the Multi Commodity Exchange recorded a high of ₹27,940/10 gm on July 1 and subsequently reversed lower.

Immediate resistance for the contract is at ₹27,550. The 55-day moving average resistance is also poised near this level at ₹27,685.

Intra-week rallies towards these resistances could attract selling interest on the contract.Short-term traders can make use of such rallies to initiate fresh short position at ₹27,550. Stop-loss can be kept at ₹27,750 for the target of ₹27,150.

The 200-week moving average at ₹27,080 is a key support level for the contract.

This level can be tested in the coming week. A reversal from ₹27,080 can take the contract higher towards ₹27,500-28,000 once again in the medium-term.

A strong breakthrough of ₹28,000 is needed to turn the outlook bullish for the contract.

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

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