AHMEDABAD (Commodity Online): Gold prices are trading higher on MCX on improved demand under safe haven buying and also weakening of Dollar against major currencies. Although demand for physical gold is not picking up from major consuming countries like India, the bullion metal went up from 18200 to 18700 within last 6 trading days. Gold prices are likely to correct from the present levels and may touch 18400-18200 levels in short term.
MCX Oct Gold contract showed gap up opening at 18590 this morning and made an intraday low at 18587 against previous close of 18565 and last traded at 18695 up by 130 rupees after hitting an intraday high of 18732.
According to Shyamal Mehta, Sr. commodity analyst with Commodity Online, "Gold prices are likely to trade in 17800-18700 band."
14 days RSI for MCX Gold Oct contract is at 70 levels which suggest Gold prices are overbought. MCX Gold future prices are trading above 7, 14 and 20 days moving averages whish shows uptrend. Support for Gold is seen at 18550 and below it, prices can test 18400 while the resistance levels are 18750 and 18900 respectively.
