For the last few months, analyst were talking about the collapse of gold below $1300 levels. On the MCX Gold charts, it looks like a 1999-2011 retracement rally.
Gold prices at MCX are now trading down to 25000 levels. Ben Bernanke's statement stands as the crucial factor behind the collapse of Gold and Silver. MCX Gold, which was trading around 28000 levels with high strength in the paper charts, collapsed in a short span of time.
The triangular pattern was broken at 28000 levels. Since then, the commodity witnessed bearish trend. Investors taking short position on bearish rally impacted gold prices.
The commodity should sustain its position around 26500-26000 levels, or else it may decline to 25000 levels. At these levels, the commodity may witness a steady rally towards 24500 levels. Commodity will face another support at these levels.
On charts, Gold is showing bearish phenomenon. The MACD has fallen to negative territory and P-ROC (Rate of Change) is bearish. The RSI is weak at 41.93.
Short covering at 26000 levels may witness slight uptrend in the near term. The overall trend remains bearish for MCX Gold.
MCX Gold August Short Term: Bearish
Support: 26500, 26000
Resistance: 27800, 28000
Turn around levels: 26000- 26500-27200