Gold likely to again top $1,515-1,535 zone
At the MCX, prices are holding crucial support of Rs 37,800 level.
Commodity Summary MCX
After cancellation of the summit, concerns over US-China trade deal resurfaced and this supported prices in the international markets and gold breached its crucial resistance at $1,500.
Gold prices also got a boost from interest rates cut by the US Federal Reserve and lower-than-expected quarterly GDP numbers. We expect the precious metal to remain firm and hold crucial support of $1,466. Any downward correction towards $1,484 will be a buying opportunity.
At the MCX, prices are holding crucial support of Rs 37,800 and consolidating in the price range of Rs 37,800-38,100 in the last few sessions. Gold in the domestic market may test the Rs 38,500-38,600 zone, and any dip towards Rs 38,000 can used to buy.
Gold tested a high of $1,566 on Comex in September and corrected nearly 36 per cent to take support at lower levels. On the technical chart, gold is still looking firm and holding key support of $1,466, consolidating in the $1,484-1,500 zone.
The precious metal will show weakness only when it closes and sustains below $1,466, and in that case, it could test $1,450-1,430 zone. Sustaining above $1,500 could extend rally towards $1,515-1,535.
At the MCX, gold has given a strong run up in the last five months, prices gained from the low of Rs 31,232 in May to the high of 39,885 in September.
We expect gold prices to remain firm in the domestic market and hold key support of Rs 37,800. If it falls towards Rs 38,000, it could test 38,500-38,600 zone.
Gold will show weakness only when if closes and sustains below Rs 37,800, and in that case, it could test Rs 37,500-37,300.
Strategy: Buy gold Rs 38,100-38,000 | Stop Loss Rs 37,800 | Target Rs 38,500-38,600.
(Please consult your financial adviser before taking any position in the stock/s mentioned)