MCX Gold June Future is in consolidation

Fundamental & Technical Outlook on Commodities - Precious metal

Mr. Vivek Gupta - Director Research - CapitalVia Global Research Limited

Gold prices moved in range over the day as meeting minutes by Fed showed that most Fed officials not keen on raising the interest rates soon. Poor performance by equities in international market also pushed the Gold prices higher by increasing the safe haven appeal for Gold. SPDR Gold Trust, the world's largest Gold-backed exchange-traded fund, said its holdings fell 0.26 tonnes to 806.22 tonnes. Increasing tensions in Russia over warning by Russian president also pushed the Gold prices higher. Gold prices are expected to move in a range to down for the week over poor physical demand internationally and in Asian markets along with rising uncertainty in the market.

Over all, MCX Gold June future is in consolidation and sustaining in a range. For the coming week 28500/28100 will act as a major support whereas 29200/29500 will act as a major resistance level in MCX Gold June future. For the next week in MCX Gold, trader can use buy on lower level strategy, if MCX Gold June future sustains above the levels of 28820 then it could test the levels 28950/29200.

Technically, MCX Silver May futures is in consolidation and sustaining around lower levels. For the coming week 46000/47200 will act as major resistance levels where as 42500/41000 will act as major support in MCX Silver May futures. For the next week in MCX Silver futures, traders can use buy on lower level strategy, if MCX Silver May futures sustains above 43900 then it could test the levels of 44900/ 46000.

Source : Equity Bulls

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