GOLD Sell MCX Gold (Oct) below 31450 SL 31610 TGT 31100
- Even though COMEX Gold gained consecutively for fifth week but the gains were minimal as com-pared to past five weeks due to Euro region currency witnessing the first weekly loss in last six weeks.
- Euro seems quite weaker which In turn results into strength of the greenback reducing safe heaven demand of yellow metal as Greek Prime Minister handed the third refusal in less than two weeks by his coalition partners on an 11.5 billion-euro ($14.9 billion) budget-cut package that’s key to receiving international aid funds indicating probable delay in Greek bailout till early October.
- Looking from the Technical perspective, Gold seems quite weaker than Silver as it formed Shooting Star candle stick pattern on a daily chart indicating a correction while on a weekly chart also it indi-cates a formation of Doji candle. Hence, price correction till $1750 is expected with MCX Gold (Oct) seems testing 31100 with the resistances being 31610 and 31800.
- Hence, it is advisable to build short position in MCX Gold (Oct) below 31450 SL 31610 and TGT being 31100.
