AHMEDABAD (Commodity Online): Gold edged up by 0.36% in the afternoon session in MCX on the back of Dollar weakness. Gold is expected gain on fourth day as a weakening dollar increases demand for the metal as an alternative investment. Safe heaven investment is another encouraging factor that results into increased buying.
Gold opened at 16315, made a low of 14315 and day’s high of 16386.Total volume for the day is 6417 lots and open interest around 10305.
Resistance for Gold can be seen at 16500 and support levels at 15800. Gold Apr Futures at MCX decreased from 16460 to 16252 in the last 5 days. 14 days RSI for Gold is at43.4 and it is increasing on a constant level since last 3 days due to lower level buying pressure.
“Technically, Gold can be short at 16500 with a stop loss of 16550 for target of 16300,” said Hardik Shah, Sr. Commodity Analyst with Commodity Online.
The dollar was tad changed against the euro after earlier falling as much as 0.4 percent as signs the global economy is improving damped demand for the greenback as a refuge. Gold typically moves inversely to the U.S. currency. Holdings in the world’s biggest gold-backed exchange-traded fund climbed to the highest level this year.
“Fundamentally, Gold is not so strong for short term. One can make short position at 16450 levels for short term,” added Shah.
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