Near-term outlook is bullish for MCX gold price
New Delhi-India (Jun 20) The near-term outlook for the gold futures contract traded on the Multi Commodity Exchange is bullish. The contract has been on a strong wicket over the past three weeks.
It has surged about 7 per cent in three weeks. A strong 7 per cent rally in the global spot gold prices in three weeks has lifted the domestic futures contract also higher. The yellow metal gaining safe haven status on the back of the Brexit vote scheduled for this Thursday (June 23) has triggered this sharp rise in the prices.
The MCX gold futures contract has support between ₹30,300 and ₹30,200 per 10 gm. There is no danger of an immediate fall as long as it trades above this support zone. Though a break below ₹30,200 can take it to ₹30,000, the outlook will turn negative only if the contract declines below ₹30,000; which looks less probable. Resistance is in the ₹31,100-₹31,200 zone.
A strong break above ₹31,200 can take the contract to ₹32,000 or even higher. Traders with a short-term perspective can make use of dips to go long near ₹30,300. Stop-loss can be placed at ₹29,850 for the target of ₹31,100.
On the global front, strong support is in the $1,270-50 per ounce zone which is likely to limit the downside for the spot gold prices.
Resistance is at $1,310. While below this resistance an intermediate dip to test the $1,270-$1,250 zone cannot be ruled out. Such dips will provide a good buying opportunity. A strong break above the resistance at $1,310 can boost the momentum and take the gold price higher to $1,330 and $1,350.