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“Traders should follow buy on dips strategy considering major support as stop loss or wait for the break of strong resistance before entering short term deals,” said Amrita Mashar, Research Analyst at..

23 Apr 2013

MUMBAI (Commodity Online): Gold futures for June delivery on India's Multi Commodity Exchange (MCX) may trade sideways in the range 26100 - 26500 for the day.

“For intra-day, support for the commodity is seen at 26100 while 26500 is the resistance,” said Amrita Mashar, Research Analyst at Commodity Online.

“Traders should follow buy on dips strategy considering major support as stop loss or wait for the break of strong resistance before entering short term deals,” added Amrita.

MCX gold for June delivery was down by 0.03% at Rs.26534 per 10 grams as of 05.20 PM IST on Tuesday.

In the global market gold lost its weekly gains today. Outflows from Exchange Traded Funds (ETFs) are still pressure on investors sentiments.

“From a technical stand point, there are still downside risks to gold prices. I suspect we haven't really seen the market turning around to be bullish in gold prices just yet,” said CIMB regional economist Song Seng Wun to Reuters.

Persisting negative trend on gold in the international market has supported massive gold buying in Asia.

China’s HSBC Flash Purchasing Managers Index, fell to a two-month low of 50.5 in April from the final reading of 51.6 in March.

The macro backdrop remains gold-supportive, and prices may average $1500/oz in the fourth quarter of 2013. Also, for 2013, prices are expected to average $1483/oz, stated London based Barclays in its recent market analysis.

Demand from India and China has responded strongly to lower gold prices but, according to Barclays, given the sizeable cash-negative ETP holdings at current price levels, the near term looks fragile and prices could be exposed to further downside risk.

Gold futures for June deliver on Globex platform of Comex was down by 0.03% at $1420.75 per troy ounce as of 05.35 PM IST on Tuesday.


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