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Nov 30, 2012, 03.29 PM IST | Source: Moneycontrol.com

Buy Gold on dips to USD 1721: Geojit Comtrade

Geojit Comtrade has come out with its report on Gold. According to the research firm, one can buy spot Gold on dips to USD 1721 with a stoploss of USD 1715 for a target of USD 1738.

Geojit Comtrade has come out with its report on Gold. According to the research firm, one can buy spot Gold on dips to USD 1721 with a stoploss of USD 1715 for a target of USD 1738.

Spot gold traded in a narrow range, on course for a biggest weekly drop this month as uncertainty over the US fiscal-cliff talks influenced investor confidence. The $600 billion tax hikes and spending cuts starting from January threatens to drive the US economy again into a recession. A successful Greek debt deal and a strong Euro pushed prices higher last week but it erased most of such gains in the early trading of this week. The Euro traded almost steady moving back from a one month high versus the dollar after the US Republican Lawmaker John Boehner negated hopes of a US budget deal yesterday. Investment interest in gold is seen steady with the holdings of SPDR, the world’s top gold ETF being placed at peak levels. The SPDR holdings climbed almost 11 tonnes so far this month, the fourth month of straight gains. After a hefty sell off witnessed on Wednesday, prices have been trading in thin ranges.

Prices are successfully trading well below the 50 day moving average of $1737, suggesting more room for further selling pressure in the counter. On a broad basis $1662 looks to be possible, early attempts to evolve into such a sell off targeting the same are expected to face stiff support at $1704-1700 regions, which if unsuccessful would diffuse such liquidation pressure and would see prices correcting higher. However, a convincing violation above $1752 is required to negate the current selling momentum but such rallies are least expected in the immediate run. Intraday, initial pullbacks are anticipated followed by a consolidation and drift prices lower. MSCD is nearing a crossover while the volumes are seen slightly perking up.

Trading strategies for spot Gold:

Buy on dips to USD 1721, target- USD 1738, SL-USD 1715.

Buy above USD 1755, target-USD 1770, SL-USD below 1748. 

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To read the full report click here

READ MORE ON  Geojit Comtrade, Gold

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