Gold to see major support level at Rs 29,950: CapitalVia Global Research

Posted By:
Subscribe to GoodReturns

Gold to see support at Rs 29,950: CapitalVia Global Research
Gold demand surges as prices drop on strong rupee. Gold futures on domestic exchanges declined as the rupee was strong against the US dollar.

Gold's recent declines have strengthened the case for even lower prices. Gold prices are hovering a breath above $1,700 and could easily tumble to $1,680 in the next few days as technical indicators are pointing to lower prices.

Silver has been under selling pressure due to sell-off in both gold and industrial metals.

Crude oil futures fell after the Energy Department reported a big jump in U.S. oil inventories that signaled the market has plenty of supply.

Crude fell sharply in last few days as uncertainty about health of major economies has kept demand concerns. Concerns that higher crude price will threaten economic recovery has also kept a tab on price. Higher gasoline price in US has been cause of concern ahead of US Presidential elections. Price has slumped sharply in last few days as election comes closer.

Base metal prices are mostly higher in Asia trading, as dip buying and a stronger-than-expected HSBC flash China manufacturing PMI for October lend support. Benchmark three-month copper is trading at $7,892.50/ton, up 0.8% from its previous settlement.

Technically, trend of MCX Gold futures is consolidate and last week it was unable to sustain at higher levesl. For the coming week, 29950 will act as major supports whereas 31550 will act as major resistances in MCX Gold Dec. futures. For the next week in MCX Gold, traders can make sell position on higher level and if it sustains below the level of 30800 then it could test the levels of 30650 / 30250.

Technically MCX Silver future is consolidate and also, sustaining above 58600 levels. Last week MCX Silver Dec. futures was sideways around lower levels. For the coming week 61100 is the major resistance levels whereas 56880 is a major support in MCX Silver Dec. futures. For the next week traders can use sell on higher level strategy, if Silver Dec. futures sustains below 58600 then it could test the levels of 58000/ 57300.

Technically MCX Copper future is in bearish trend and due to selling pressure, it is sustaining around lower levels. So, for the coming week it could face major resistance of 434.20 levels whereas 408.70 could be a major support level in MCX Copper. For the next week in MCX Copper, traders can use sell on higher level strategy, if Copper future sustains below 419.45 level then it could test the levels of 413.80/ 409.00

Overall trend of MCX Crude oil future is bearish and also sustaining around 4630 levels, In the last week, MCX Crude oil Nov. future remained in bearish trend for the entire week. For the coming week 4450 will act as major supports whereas 5000 will act as major resistances in MCX Crude oil November future. So, for the next week in MCX Crude oil, traders can use sell on higher levels strategy and if it is sustain below 4600 then it could test the levels of 4530/4470.

GoodReturns.in

Read more about: gold, silver, mcx
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Thousands of Goodreturn readers receive our evening newsletter.
Have you subscribed?