MCX Gold: A Cat And Mouse Game!
CommodityOnline | Jul 07, 2013 01:30AM ET
Gold market is always unpredictable... It never provides a peace of mind for investors. Once, the experts were predicting a rally towards $3,500 per ounce. But futures market distorted gold to $1,170 levels. So what will be the next game of gold...?
Gold prices at India’s Multi Commodity Exchange (MCX) are still on the verge of a downfall. The commodity has failed to sustiain at 26500 levels and retreated to 26,000 levels. Weakness in Indian rupee capped further setback in MCX gold prices.
The Commodity is trying to form a triangle pattern around 25,800-26,500 range. The yellow metal had crashed last week on high sell off. This retracement rally illustrates about gold moving towards 27,000-28,000 range.
The commodity should remain around 26,000-27,000 levels. Breaching 25,800 levels may witness bear rally towards 25,000 levels. The yellow metal will face another support at these levels.
On charts, gold is showing bearish phenomenon. MACD is negative and P-ROC (Rate of Change) is at bearish territory. RSI is neutral.
Profit booking at 26,400-26,500 levels may witness slight downtrend in the near term. The overall trend remains bearish for MCX gold.
MCX Gold August Medium term: Bearish
Support: 25840, 25730
Resistance: 26300, 26480
Turn around levels: 25800-26500-27000
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