Gold edged higher in mid of the week, its third day of gains in four sessions, but a lack of buying support from Asia, a strong U.S. dollar and firmer equities due to hopes of more stimulus from the European Central Bank are expected to check any big upside for the metal. SPDR Gold Trust GLD, the world’s largest Gold-backed exchange traded fund, said its holdings fell 1.49 tonnes to 795.60 tonnes on mid of the week.
For next week, we can expect COMEX Gold October Futures prices to trade on negative note as weakness in Indian Rupee. Technically COMEX Gold if it sustain below the level of $1270 then it can test the levels of $1250 and $1230 on the downside. If MCX Gold October futures sustains below 27700, then downside movement can be seen till the levels of 27500 and 27300.
