Gold price on the global market has retreated after recording a high of $1,332/ounce on July 1. Good employment numbers that turned the dollar stronger pulled the yellow metal price lower.
Gold will now have to breach its key resistance at $1,330 in order to bring back the bulls into the market and take the commodity higher to $1,350 levels. While a stay below this level, the probability looks high for the commodity to decline to test its key support at $1,300 in the coming week.
On the domestic front, the gold futures contract traded on the Multi Commodity Exchange recorded a high of ₹27,940/10 gm on July 1 and subsequently reversed lower.
Immediate resistance for the contract is at ₹27,550. The 55-day moving average resistance is also poised near this level at ₹27,685.
Intra-week rallies towards these resistances could attract selling interest on the contract.Short-term traders can make use of such rallies to initiate fresh short position at ₹27,550. Stop-loss can be kept at ₹27,750 for the target of ₹27,150.
The 200-week moving average at ₹27,080 is a key support level for the contract.
This level can be tested in the coming week. A reversal from ₹27,080 can take the contract higher towards ₹27,500-28,000 once again in the medium-term.
A strong breakthrough of ₹28,000 is needed to turn the outlook bullish for the contract.
(The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.