MUMBAI (Commodity Online): Gold prices once again surged to record level in the domestic futures market Monday with firm support of international market due to the weak US dollar.
MCX gold struck new all time high of Rs 16884 up Rs 84 from its last session. It was recently seen quoting at Rs 16863 level. The counter has a major support around Rs 16795 levels, which can be used as a stop loss.
Now technically market is in overbought as RSI for 18days is currently indicating 75.18, where as 50DMA is at 15994 and gold is trading above the same and getting support at 16787 and below could see a test of 16690 level, And resistance is now likely to be seen at 16858, a move above could see prices testing 16916.
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COMEX December gold futures jumped above $1130 an ounce, extending their gains from last week, as further weakness in the U.S. dollar helped fuel safe-haven buying.
The latest gains for the precious metal came on the heels of further weakness in the U.S. dollar, with greenback buying 89.56 Japanese yen, down from 89.72 yen late Friday in New York.
Gold has completed its second up week off of correction pull back 1027. The unit is currently at 1116 shows no sign of slowing despite the extended nature of the move. Current measured move target remains 1130. While the unit remains above 1070 the risk remains for higher prices.
