In the international market too gold saw a sharp decline. The firmer USD was a negative influence on the gold price, a report from Common Wealth Bank stated.
February COMEX (New York Mercantile Exchange’s Commodity Exchange) gold contract closed 2.4% lower at $858.10/ounce. Spot gold fell by two percent to $857.67/ounce.
Giving a technical view, Chintan Karnani of Insignia Consultants said Gold February contract on COMEX $830/ounce is the key short term support. Gold needs to hold $830/ounce or break $890/ounce for direction.
“Intra day gold needs to break $869/ounce-$875/ounce zone else it will fall to $839/ounce and $824/ounce,” Karnani said.
February gold on the Multi Commodity Exchange of India (MCX) opened at Rs 13,309/10 grams on Tuesday, while it had closed at Rs13,329/10 grams on Monday.
“On the domestic front technically gold needs to break Rs13,900/10 grams till next week else it will fall to Rs12,500/10 gram and Rs12,000/10 grams,” Karnani added.
Intra day gold needs to hold Rs13,200/10 grams to be in bullish zone.
