Gold falls from three week high as market awaits conclusion of Fed Meet for further cues. Earlier prices hit a three-week high of $1284.85 on Monday due to violence in Iraq.Fund flows were negative in SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund. Holdings in the SPDR Gold Trust fund fell by 0.26 tonnes to 782.62 tonnes on Tuesday – a second straight day of declines. The fund, considered a proxy for investor sentiment, posted its biggest outflow since mid-April on Monday. Physical markets in Asia have also not been able to boost prices.
For next week, we can expect COMEX Gold August Futures prices to trade on the positive note as market will take further cues from tensions in Iraq and Ukraine. It could be expected to move upside and above the level of $1285, it could test the levels of $1305 and $1325 .If MCX Gold August futures sustains above 27100, then upside movements can be seen till the levels of 27300 and 27500.
By Vivek Gupta, Director Research, CapitalVia Global Research Ltd
