MCX-Gold futures ended two consecutive months of upmove, falling 3.7 per cent last month. Though the contract bounced back sharply after touching a low of ₹27,907 per 10 gm, it has failed to breach ₹29,000. The downward reversal in the last week signals weakness. A dip to test the psychological support at ₹28,000 looks likely in the near term. The region between ₹28,000 and ₹27,980 is a key support to watch as the 100- and 200-week moving average and a Fibonacci retracement supports are poised in this zone. The next leg of move will depend on whether the contract reverses higher from this support zone. A decisive weekly close below ₹27,980 will increase the likelihood of the contract falling to ₹27,000 or even lower. On the other hand, if the contract manages to sustain above ₹27,980 and bounces higher, a rise to ₹29,000 can be seen. An eventual break above ₹29,000 can target ₹29,675 – the key 200-day moving average resistance. A strong break above this hurdle will pave the way for the next targets of ₹30,000 and ₹30,450.

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