Ahmedabad : Gold trading initiated with drastic buying following year end buying taking into account the value buying from the hedge managers and value buyers, as the prices moves in oversold condition.
Dollar index is currently trading at 80.452 (4:30PM) after opening at 80.426 and if it closes above 80.61 we can expect bullish rally to continue for a short term and that may discourage the overall sentiments to invest in the bullion or the precious metals.
MCX gold is currently trading at Rs. 27254 and in spot market it was available in discount of Rs. 100 during afternoon session which happened first time after the bullish rally of the yellow metal since past few years. Meanwhile, the Chinese economy is expected to grow with 8.6% as compared with previous rate of 10% on annual basis, due to deteriorating global financial condition.
China has already banned few exchanges which are trading in gold as a result of which gold and silver both observed the selling pressure and made yearly low.
For today major resistance for the glittering metal is around Rs. 27500 and support at Rs. 27020, risky traders can buy it with ultimate stop loss of Rs. 27050 for the target of Rs. 27326 to Rs. 27480, adds Hardik Jani, research analyst with Commodity Online.
To get in touch with the Analyst on this report or to get a free trial on trading advisories call 079-40275050 or mail to tips@commodityonline.com
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