MCX Gold may see crucial support at Rs 29,384/28,800

Mumbai-India (Mar 22)  Gold prices moved down for the day as US Fed announced further tapering of stimulus and also hinted at raising interest rates earlier. Reducing global tensions and reduced stimulus from Fed also pushed US stock markets higher. Gold jewellery exports from India edged higher by 1% in February to USD 718.36 million from a year earlier. U.S. President Barack Obama raised the stakes in an East-West confrontation over Crimea on Thursday by targeting some of Russian President Vladimir Putin's closest long-time political and business allies with personal sanctions

"Gold prices are expected to move down for the week as impact of FOMC announcement and reducing tensions in the market can push the prices further down," opined Vivek Gupta, director research, CapitalVia Global Research.

Further he said, "Over all, MCX Gold April future is in consolidation and sustaining around lower levels. For the coming week, 29,384/28,800 will act as a major support whereas 30,000/30,550 will act as a major resistance level in MCX Gold April future. Trader can use sell on  higher level strategy, if MCX Gold April future sustain below the levels of 29,680 then it could test the levels 29,550 / 29,384."

Source: myiris