Gold extended gains on Monday as crude oil prices touched new high amid prolonged unrest in the Middle East and North Africa along with delay in Nigerian elections.
Gold is also benefiting from concerns over euro zone economies such as Portugal and Ireland as they continue to struggle with sovereign debt.
We expect the uptrend of gold to continue as the global uncertainty is likely to support safe haven appeal for the metal.
However, recovery in dollar against major currencies and profit booking at higher levels may cap gains in the same.
Gold demand in physical market will increase ahead of wedding season in India. This will further support yellow metal in the near term. Support for the same can be seen at Rs20900/10gm in MCX.
