Gold Near Term Resistance Around 29700

Published 01/07/2014, 05:07 AM
Gold
Gold prices gained strong upside momentum in the last week as prices managed to break above Rs 28700/10gms mark and bulls extended control immediately. This upside movement can be seen as short term pullback of a long term negative trend that has kept prices under pressure in the last year. Near term resistance can be seen around Rs 29700/10gms, breach of which may underpin the counter towards Rs 30300/10gms mark.

On the downside, Rs 28500/10gms may offer strong support to bulls and as long as prices are trading above the same, bears have comparatively less chances of taking over the counter. Short term traders are advised to initiate buy positions at some lower levels for the next week with a stop loss of Rs 28800/10gms and a target of Rs 29700/10gms.

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