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Feb 11, 2013, 04.52 PM IST | Source: Moneycontrol.com

Buy MCX Gold futures near Rs 30720-30600: Fortune Fin

Fortune Financial Servies has come out with its fundamental report on bullion. According to the research firm, traders can buy MCX Gold futures near Rs 30720-30600 stop below Rs 30200 for the target of Rs 31200 & 31555.

Fortune Financial Servies has come out with its fundamental report on bullion. According to the research firm, traders can buy MCX Gold futures near Rs 30720-30600 stop below Rs 30200 for the target of Rs 31200 & 31555.

Gold futures on MCX are likely to trade with a negative bias as investors park funds in riskier assets following a series of positive economic data from the US and China, the top consumers of commodities. Though the US Federal Reserve has so far not hinted at any rollback of the quantitative easing programme, market players fear some tightening of policies in the coming months, as the world's largest economy is showing signs of recovery.

Meanwhile, China's trade surplus rose 7.7% on year to $29.2 bln in January with exports up 25% on year at $187.4 bln. Market continue to favor the downside in gold as it would seem to take a really definitive risk off environment to rekindle broad-based fresh buying interest in gold.

A weaker euro and the absence of Chinese players from the market will also keep prices under pressure. Concerns had emerged with the common European currency falling Thursday after European Central Bank President Mario Draghi said the impact of a strong euro on inflation will be watched.
However, a weaker Indian rupee against the dollar may keep the domestic prices well supported.

MCX Gold April contract has turn positive on chart after its sustained above 30800 and close above this level on weekly chart. It’s looking positive if holds strong support near 30200.

Initial upside levels are seen near 31200 -31555 & 32275 on chart, traders cab buy on dips.

Recommendation: Traders can buy near 30720-30600 stop below 30200 for target of 31200 & 31555.

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