MCX- Gold (₹27,445)

Gold futures contract on MCX fell over 3 per cent last month breaking below the key 100-week moving average support at ₹27,911. The broader view remains bearish with strong resistance between ₹28,000 and ₹28,500. Though an intermediate bounce to test the ₹28,000-₹28,500 cannot be ruled out, a decisive break above ₹28,500 looks less probable.

A subsequent reversal from this resistance zone will keep the broader downtrend intact. The contract can then fall to ₹26,300. The level of ₹26,300 is a key long-term trend support. The possibility of the current downtrend halting around ₹26,300 and a subsequent reversal from there cannot be ruled out. On the global front, spot gold prices are stuck in between $1,120 and $1,165 over the last three weeks.

A strong break above $1,165 may ease the downside pressure. Such a break can take the yellow metal higher to $1,200. But an immediate break above $1,200 might not be easy for gold. On the other hand if the prices decline below $1,120 it can target $1,100 or $1,080.

c:set var="prUrl" value="https://premium.thehindubusinessline.com" />

Read further by subscribing to

The Hindu Businessline

What You'll Get

  • Web + Mobile

    Access exclusive content of the Hindu Businessline across desktops, tablet and mobile device.


  • Exclusive portfolio stories and investment advice

    Gain exclusive market insights from the Hindu Businessline's research desk.


  • Ad free experience

    Experience cleaner site with zero ads and faster load times.


  • Personalised dashboard

    Customize your preference and get a personalized recommendation of stories based on your intrest.

Related

This article is closed for comments.
Please Email the Editor