The gold futures contract traded on the Multi Commodity Exchange (MCX) continues to hang around the 200-day moving average for three consecutive weeks and trades in a narrow range.

It is currently trading at around ₹30,000 per 10 gm. The price action on the charts leaves the bias bullish with strong support in the ₹29,700-29,500 zone.

As long as the contract trades above this support zone, the possibility is less to see a fresh fall. Immediate resistance is at ₹30,400. A strong break above this hurdle can boost the bullish momentum.

Such a break can take the gold futures contract higher to ₹31,000 and ₹31,200 in the near-term.

Short-term traders with high risk appetite can go long at current levels. Stop-loss can be placed at ₹29,350 for the target of ₹31,000. A decisive daily close below ₹29,700 will be first sign of weakness. In such a scenario, the likelihood will increase for the contract to decline below ₹29,500.

The contract will come under pressure for a fresh fall to ₹29,000 or even lower on a break below ₹29,500.

On the global front, the spot gold price has been stuck inside a narrow range between $1,260 and $1,280 per ounce for more than a week.

A breakout on either side of this range will decide the next leg of move for the contract. A strong break above $1,280 can take the contract higher to $1,300.

On the other hand, a fall below $1,260 can drag the bullion prices lower to $1,235 in the near-term.

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

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