``Despite weaker oil prices, a rallying USD and slumping equity markets, gold prices rocketed due to significant fund buying, hitting resistance near USD 750``, Ajay Kedia, managing Director of Kedia Commodities stated.
In New York,Gold opened at USD 735.00/737 in the last trading session. Good buying helped the metal tick higher as the session progressed, reaching an intraday high of USD 751.50/753.50. However, profit taking during the tail-end of the day pushed gold lower to close at USD 742.50/744.50.
In today`s session of MCX, gold December contract was trading down 0.34%at Rs 11,768 per 10 grams. It opened at Rs 11,790 as against its previous closing of Rs 11,828. The support for the gold MCX is seen at Rs 11,761 and below could see a test of Rs 11,717. Resistance is now likely to be seen at Rs 11832, a move above could see prices testing Rs 11,859.
``Gold futures are expected to trade in the range of Rs 11,500-12,050, driven by rupee movement``, he stated. ``Hence selling MCX gold futures at Rs 11,810-825 with a stop loss of Rs 11,856 and target of Rs 11,786-11,762-11,738-11,725 is suggested``, he added. He also recommended taking long position in gold futures at Rs 11,680-730 with a stop loss of Rs 11,630 and target of Rs 11,756-11,800-11,848-11,898. |
