Gold prices on MCX slid more than 2% on Friday, extending losses from the previous session when US central bank chief Ben Bernanke disappointed investors by giving few hints on imminent monetary stimulus. Gold fell more then two percent from the previous day's record high as the rupee hit its strongest level in two weeks and global gold prices fell, though physical traders waited for bigger falls before entering into deals. Scrap flow remained firm.
A drift lower is favoured towards 29100, but is unlikely to evolve into major weakness unless confirmed with successive days of close below 29344. A push higher above 29800 would dilute intraday bearish sentiments but is required to close above 29800 to trigger rallies.
Spot gold prices declined by more than 0.2 percent today, however weakness in the US Dollar Index (DX) cushioned further fall in prices. The yellow metal touched an intra-day low of $1612/oz and hovered around $1615/oz.
MCX Gold is now trading in overbought level. The market sentiments are showing a SELL signal For short term. The current position is BUY. Positionally Support for the Gold is 29183-28696. Resistance for the Gold is 29592-29850.
For Intraday- Buy is advised above 29846 with a stop at 29024, else below 28789 go for sell.
