MCX Gold April Future is in consolidation mode

Fundamental & Technical Outlook on Commodities - Precious metal

Mr. Vivek Gupta - Director Research - CapitalVia Global Research Limited

Gold prices moved down for the day as US Fed announced further tapering of stimulus and also hinted at raising interest rates earlier. Reducing global tensions and reduced stimulus from Fed also pushed US stock markets higher. Gold jewellery exports from India edged higher by 1 percent in February to $718.36 million from a year earlier. U.S. President Barack Obama raised the stakes in an East-West confrontation over Crimea on Thursday by targeting some of Russian President Vladimir Putin's closest long-time political and business allies with personal sanctions. Gold prices are expected to move down for the week as impact of FOMC announcement and reducing tensions in the market can push the prices further down.

Over all, MCX Gold April future is in consolidation and sustaining around lower levels. For the coming week 29384/28800 will act as a major support whereas 30000/30550 will act as a major resistance level in MCX Gold April future. For the next week in MCX Gold, trader can use sell on higher level strategy, if MCX Gold April future sustain below the levels of 29680 then it could test the levels 29550 / 29384.

Technically, MCX Silver May futures is consolidate and sustaining around lower levels. For the coming week 45800/47000 will act as major resistance levels where as 42400/40000 will act as major support in MCX Silver May futures. For the next week in MCX Silver futures, traders can use sell on higher level strategy, if MCX Silver May futures sustains below 44700 then it could test the levels of 43600/ 42400.

Source : Equity Bulls

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