Gold to see major support level at Rs 31,200: CapitalVia Global Research

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Gold to see support at Rs 31,200: CapitalVia Global Research
Gold futures contracts were trading higher tracking the weak rupee against the dollar. The depreciation of the rupee would hold the prices on the upside in the Indian market. in dollar terms, the prices look to be positive because of the weakness in the dollar index and the optimism building around the global economy that they will resolve the fiscal issue and the Euro Zone problems would be taken care of in the meeting of the EU ministers.

Gold futures:

In the last week, we also saw the buying rally in MCX Gold December future due to week domestic currency against the dollar. Overall, MCX Gold future is in up trend and looking very strong on the chart. So for the coming week 32450 will act as major resistances level and 31200 will act as a major support in MCX Gold Dec. futures. Last week MCX Gold Dec future was sustaining around 32000 for the next week traders can use buy on lower level strategy, if it is sustain above level of 32100 then it could test the level 32250/32400.

Silver futures:

MCX silver was moving in a consolidation in last week and also sustaining at higher levels. So for the next week 65800 will act as a major resistance whereas 59200 will act as a major supports in MCX Silver Dec future. Last week MCX Silver was sustaining around higher levels. For the next week traders can use buy on lower levels strategy, if it is sustains above the level of 63065 then it could reach around the levels of 65000.

Industrial metals prices rose after a manufacturing survey from top consumer China boosted optimism about the pace of economic recovery, with a weaker dollar against the euro also helping to lift metals prices. Depreciation of the rupee and China economic recovery is also a positive sign for the base metal, because china is a biggest consumer of metales in all over the world.

Copper futures: 

Technically MCX Copper future is range bound and also, sustaining around 428 levels. So, for the coming week it could face major resistance of 444.40 levels whereas 417 could be a major support level in MCX Copper. For the next week in MCX Copper, traders can use buy on lower level strategy, if Copper future sustains above 430.10 level then it could test the levels of 434/ 442.

Crude Oil futures:

With the announcement of ceasefire in the Gaza city, crude oil prices dropped paring weekly gains. Brent crude oil for January delivery was seen trading at $110.29 a barrel or at a loss of 0.10% as of 10.11 am IST.

Overall, trend of MCX Crude oil future is in consolidation and looking weak on charts. For the coming week 4590 will act as major supports whereas 5085 will act as major resistances in MCX Crude oil November future. Last week MCX crude oil was sideways around lower levels. So for the next week traders can use sell on higher levels strategy and if it is sustain below 4780 then it could test the levels of 4710/4600.

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Read more about: gold, silver, futures, mcx
Story first published: Monday, November 26, 2012, 11:00 [IST]
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