India: Short-term outlook remains bullish for MCX gold

New Delhi-India (Feb 22)  The gold futures contract traded on the Multi Commodity Exchange (MCX) found support at a low of ₹28,425 per 10 gm last week. The contract reversed sharply by about 4 per cent to close at ₹29,515 on Friday.

On Monday, the contract has come off slightly and is currently trading at ₹28,885. Strong support lies at ₹28,500. There is no threat of a sharp fall as long as the contract trades above ₹28,500. Dips to these supports may find fresh buying interest.

The outlook is bullish. Resistance is between ₹29,800 and ₹30,000 which is likely to be tested in the near-term. A strong break above ₹30,000 can take the contract higher to ₹30,300 and ₹30,500 initially. This break will also keep the uptrend intact and the contract can target ₹31,000.

Traders with a short-term perspective can go long at current levels. Stop-loss can be kept at ₹28,350 for the target of ₹30,200. Intermediate dips to ₹28,500 can be used to accumulate long positions.

On the global front, the spot gold price ($1,207/ounce) has come-off from Thursday’s high of $1,240. Support is in the $1,200-1,190 zone. A reversal from this support zone can take the gold price higher to $1,240-1,250 once again. On the other hand, a break below $1,180 can extend the fall to $1,180 and $1,175.

Source: TheHindu