Gold traded near three-week high as investors weighed prospects for renewed fighting in Gaza and geo-political tension between Ukraine and Russia against the outlook for U.S. economy and supported by stronger dollar.
Holdings in the SPDR Gold Trust were unchanged for a second day yesterday after dropping last week below the level at which they ended 2013.
For next week, we can expect COMEX Gold October Futures prices to trade on positive note as fall in dollar prices. Technically COMEX Gold, if it sustains above the level of $1330, can test the levels of $1350 and $1370 on the upside.
If MCX Gold October futures sustain above Rs 29100, then upside movement can be seen till the levels of 29300 and 29500.
By Vivek Gupta (Director Research, CapitalVia Global Research Ltd.)