MCX gold stuck in a range

Gurumurthy K BL Research Bureau | Updated on January 22, 2018 Published on December 14, 2015


The gold futures contract traded on the Multi Commodity Exchange (MCX) has been stuck inside a narrow range after its sharp rally in the first week of this month. The contract is range-bound between ₹25,270 and ₹25,750 per 10 gm for more than a week now. It is currently trading near the lower end of the range at ₹25,470. The outcome of the US Federal Reserve meeting is due on Wednesday. There is a strong likelihood of the contract continuing to move within this range until the Fed meet outcome is known.

Traders can stay out of the market through this week. Wait for the contract to break the ₹25,270-25,750 range, to get a clear indication on the next move.

A strong break above ₹25,750 will be bullish. It can take the contract higher to ₹26,000 and ₹26,200 thereafter. On the other hand, a fall below the 21-day moving average support at ₹25,240 can increase the downside pressure and drag the contract lower to ₹24,900 and ₹24,750.

On the global front, the spot gold price ($1,068/ounce) is stuck in between $1,060 and $1,080. A break above $1,080 will ease the downside pressure and take the spot price higher to $1,100. But a break below $1,060 will see the gold price revisiting its crucial support level of $1,050 in the coming week.

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

Published on December 14, 2015

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.