Gold Futures pulled away from 2-month lows

Commodity Market Report (for August 25 to 30) by Mr. Vivek Gupta – Director Research, CapitalVia Global Research Limited

Gold futures gained ground on Friday, pulling away from two-month lows as markets were jittery ahead of a highly anticipated speech by Federal Reserve Chair Janet Yellen in Jackson Hole later in the day.

Gold prices dropped to two-month lows on Thursday, after a string of upbeat U.S. data fuelled optimism over the strength of the country's economic recovery. Investors now looked ahead to the second day of the Fed's annual meeting of top central bankers and economists in Jackson Hole, Wyoming. We expect Gold prices to remain in range for the week as the Fed Chair's comments in the Jackson Hole meeting would create some volatility in the market.

Over all, MCX Gold October future is in bearish trend and sustaining around lower levels. So for the coming week, we are expecting major down fall form higher levels. For the coming week 27000/26500 will act as a major support whereas 28000/28600 will act as a major resistance level in MCX Gold October future. For the next week in MCX Gold, trader can use sell on higher level strategy, if MCX Gold October future sustains below the levels of 27600 then it could test the levels 27400/27100. Technically, MCX Silver September futures is in bearish trend and sustaining around lower level from last couple of the week. For the coming week 43000/44500 will act as a major resistance levels where as 39000/37700 will act as major support in MCX Silver September futures. For the next week in MCX Silver futures, traders can use sell on higher level strategy, if MCX Silver September futures sustains below 41500 then it could test the levels of 40500/39000.

Source : Equity Bulls

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