Gold prices are trading in a narrow range of 18270-18330 since this morning because of increasing risk sentiment across the globe which is limiting upside for yellow metal. It is because of International Monetary Fund (IMF) upgraded on Thursday world economy growth forecast to 4.6 percent in 2010 from the previous one of 4.2 percent. Rising equity markets across the globe dampened investor’s buying interest in Gold. Fall in physical holding of SPDR Gold ETF also weighing the prices.
Gold looks technically bearish and may test 18100-18000 levels within next few days. However, this is nothing but a short-term correction and investors will come back to buy if macro-economic and European debt outlook gets worsen.
Analysts expect that bull trend in Gold prices is still intact and Gold may test 1300 dollar mark.
MCX Gold prices last traded at 18279 with marginal loss of 34 rupees from previous close. While strong rupee also putting some downside pressure on Gold prices. Gold prices are likely to trade steady with downward bias for the next few days.
14 days RSI for MCX Gold Aug contract is at 39 levels and it shows downtrend. Gold prices are trading well below 4, 8 and 14 days weighted moving averages which also suggests that Gold prices may decline further. Support for the Gold is seen at 18150 and below could see a test of 17900. While, resistance levels are 18450 and 18700 respectively.
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