MUMBAI (Commodity Online): MCX Apr Gold opened down at 16861 vs. previous close of 16816 made an intraday high at 16889 and fell following COMEX electronic session. Presently at 2.55 pm Gold at MCX traded flat at 16826 up by 10 rupees.
14 days RSI for MCX gold Apr contract is at 59.69 level and it shows gold prices are steadily rising.
“Technically, Gold looks bullish and range for MCX Gold is from 16500 to 16950,” said Shyamal Mehta, Sr. Commodity Analyst with Commodity Online. Presently gold prices are trading above 4, 7 and 10 day weighted moving averages which signals uptrend.
Support for the Gold is seen at 16600 and below could see a test of 16400. Resistance is now likely to be seen at 16950, a move above could see prices testing 17050.
Gold prices were seen hitting a fresh one-month high early on Monday in Asian trading, following a slight uptick in the EUR/USD pair, and as Friday’s recovery off a low just under $1,100 an ounce generated fresh buy-through on persistently strong technical charts.
At 8.30GMT in London on Monday, spot gold was trading at $1,125.30 an ounce, up from $1,118.20 an ounce late in NY on Friday. Earlier in the overnight Asian session, spot gold hit as high as $1,130.60 an ounce.
At the same time, the benchmark COMEX gold futures contract for April delivery was trading $3.3 higher at $1,125.40 an ounce. Earlier in the overnight electronic Globex session, the contract had touched as high as $1,131.50 an ounce.
The EUR/USD pair traded at 1.3624, up from 1.3612 late on Friday.
“Although the slightly softer U.S. dollar has contributed to the strength seen today, it seems secondary to the bullish charts and technical plays overnight”, said Carl Johansson, sr precious metals analyst with Goldessential.com. “Friday’s bounce off the $1,100 an ounce support mark – coming despite Thursday’s Fed’s discount rate hike and the bearish IMF open market sales news - was mostly due to a late rally in the EUR/USD pair and oil, but had left gold prices close to their Feb 17 high just below $1,130 an ounce, which saw some opportunistic speculative interest and rumored fund interest on market opening late on Sunday”.
Johansson added that further support seen as the entire precious metals complex was seen advancing on Monday, assisted by strength in oil prices above the $80 a barrel mark.
“Above $1,130 an ounce is likely to target $1,143 an ounce next”, he said. He pegged decent support between $1,105 and $1,097 an ounce.
In focus this week would be Bernanke’s testimony before the Financial Services Committee on Wednesday, as well as new data on U.S. home sales, consumer confidence and the quarterly gross domestic product (GDP).
