APN News

  • Wednesday, February, 2023| Today's Market | Current Time: 09:29:18
  • By Prijath Babu

    Indian gold futures consolidating within a tight range after three days’ extended bull rally.  The crucial question right now how far the rally fetches the gold prices. Many research organizations expects for breakout which can surpass 1800 levels in short term. At present European economy was slightly relived since Greece secured the bailout. And investors are concerned for inflation hedge since G 20 countries as well as central bankers decided increase the money supply to compact against the debt crises. Iran nuclear crises also fueling geopolitical instability which might help the bullish mood in gold in short term.

    As per Reuters, India the top physical gold consumer had a dismal performance in its gold imports in last year. Gold imports were dropped by 20 percent first time in last three years. Imports in 2012 were reported near 770 tonnes compared with 969 tonnes in 2011. The weakness in rupee might the one of the most probable reason for decline in gold imports. Government initiative on imposing import duty which increases the value by 2 percent also aided in the decline in gold imports. Government wants to discourage the gold imports as an active measure to control inflation. However the physical demand in other Asian countries continued its tandem, and scarp gold attracted more demand from Tokyo.

    International spot gold currently priced at 1773.57 levels, and prices are consolidating between 1788 to 1770 levels. Technically flag pattern of consolidation is undergoing in the counter with positive breakout possibility at 1780 levels. However trades below 1770 can delay the possibility of breakout. Direct breakout of 1755 levels will negate the possibility of the positive breakout pattern with next support at 1735/1710 levels.

    Technical Outlook for the week ( Apr Contract)

    Dip toward 28620 levels is expected in the initial hours. Strong support at this level will help to regain the underlying positive mood in the counter towards 28740 /28945 or even higher towards 29450 levels. Direct fall below 28530 levels will negate this possibility with next support at 28430/28270 levels.

    The author is a market expert and can be contacted [email protected]

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