MCX Gold Future Technicals: experts expects sideways to bearish move | All you need to know

On the daily chart, MCX Gold future has been trading in a narrow range with negative bias; price breached its Horizontal Line support and traded below it. Moreover, the price shifted below Middle Bollinger Band formation and 100 days Simple Moving Averages, which suggest bearish movement in the counter for the near term. Furthermore, a momentum indicator RSI (14) & MACD also indicated negative crossover, which supports the bearish move for near term, so based on the above structure, Sumeet Bagadia, Executive Director, Research at Choice Broking are expecting sideways to bearish move in MCX Gold future. On the downside, price may find support around 49700; however on the upper side 50550 would act as resistance for the prices.

Fundamentally, for the coming month, Sumeet expects International Gold futures to continue to trade mixed as there are still uncertainties of complete revival of economic activities and uneven economic reports across the globe with lockdown having to be re-imposed in Europe and the United States. Moreover, yellow metal prices could see selling from the upper side as Gold ETF investments have shown a slowdown with recoveries in the 10-year bond yields of the major economies such as the U.S., China, European Union, Japan and U.K. Gold prices could also find capping on the higher side with decent recoveries in the global equity markets in the past few weeks and rising covid-19 vaccine hopes across the globe. 

See Zee Business Live TV Streaming Below:

Furthermore, the monetary policy stands taken by various central banks across the globe have indicated no further stimulus packages or rate cuts so far; eventually indicating that the countries are showing signs of good recoveries. Post the US Presidential Elections and Joe Biden's victory, there have been no reports of further stimulus packages so far and investments in riskier assets such as gold continue to remain bleak. In the Indian market, physical demand for gold by domestic traders has shown a decline post the Diwali season in India, however, the American gold eagle coin sales for the year so far has been higher at 729,000 ounces compared to 152,500 ounces of the previous year. Correspondingly, the US Dollar Index is finding selling pressure which could lend support to the domestic and global gold prices from the lower levels during the coming future as well. Overall, Sumeet expects a sideways trend in MCX Gold futures for the month ahead.