India MCX gold tests key resistance level
New Delhi-India (Sept 21) Last week, the gold futures contract traded on the Multi Commodity Exchange (MCX) gained almost 2 per cent.
After encountering a key resistance as well as 200-day moving average around ₹26,500 per 10 gm, the contract is currently testing this level and trades at ₹26,391 levels.
The contract took support at ₹26,000 in the week ago and reversed higher.
Now, this level acts as a significant base level. Only a fall below this level will alter the medium-term uptrend and pull the contract down to ₹25,760 and then to ₹25,500 in the short term. Therefore, traders with a short-term view can hold their long positions with a stop-loss at ₹25,950.
An emphatic breakthrough of the current resistance level can take the contract northwards to ₹26,830 and ₹27,000 in the coming weeks.
Next key resistances are pegged at ₹27,300 and ₹27,500. Subsequent, significant supports below ₹25,500 are pegged at ₹25,300 and ₹25,000 levels.
On the global front, the spot gold advanced 2.8 per cent in the week ago.
It current hovers at $1,132 per ounce. The commodity tests a key resistance at $1,140 levels.
A decisive rally above this level can push the price higher to $1,160.
But, failure to breach can pull the commodity price lower to $1,120 and then to $1,100 in the short term.