Gold (20.08.2014) traded higher as per our last article & went to $1320 mark. However a sharp fall was witnessed from there specially on mcx with combination of INR.
Dear reader , on a demand posting an article about MCX Gold this time. Generally we don’t do that because of violate behavior of gold on mcx with some common excuses like INR, import duty , contract expiry, low volume etc. Today we were watching MCX charts & very surprised that irrespective to COMEX spot Gold, Mcx gold adjust its level to complete the chart patterns. When we wrote our last article on gold , we were bullish & gold really made 1st level $1320 but at the same we were not expecting it to move almost 1000 point on MCX but it made it & now it fall almost 1000 point too.
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Both the cases INR played an important role, moved up & moved down, all fine it can happen. But when we look at the dollar index, EURUSD , USDCAD, USDCHF, USDJPY etc the story is totally different. So how it is happening with INR ??
Anyways , MCX gold now trading at 28225 & as we can see on charts , gold fall back to support zone once again. We also witness a gap due to contact expiry. This area represent the 61.8% feb. ret. level as well as many parallel support are there. Candlestick formation is not complete till now but the range bound trading suggest for the same. Indicators neutral.
Based on above studies, it is possible for gold to move higher to the predicted levels around 28502-28715 & 29080 in coming trading session. A day close below 28080 will force us to reanalyze the charts.
Note – Above view is based on technical studies & do not represent our buy-sell recommendation.For recommendations Contact Us