Published on 2009-09-09 17:11:04
Singapore - India October MCX gold contract tad down at INR15,719/10 grams, off earlier highs of INR15,814 on profit booking after recent run up in prices. However, outlook still strong as fears of inflation and weakening dollar could give momentum to rally, says Kapil Gandhi of STCI Commodities; tips contract in INR15,640-INR15,940 range for day.
With the strong bullish and positive sentiment, Gold started its day on the strong note. While everyone was eyeing the 1000 mark in the Dollar, we saw sudden selling emerging in the evening session. This led to the wiping of most of its gains and created huge volatility. In the market terms it came out as a profit taking at the higher levels. A look at the chart tells us that Gold prices are near the resistance region around 15820-16000. A decisive move above it will only push in prices into newer horizon. With the momentum indicators in the overbought zones, we may see some round of consolidations before moving higher. Hence avoid chasing the trends and look into buying into declines.
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