Buy MCX Gold Aug fut on dips; target Rs 27450: Fortune Fin

Fortune Financial Services' technical report on bullion -

Bullion The relative stability in gold prices, which oscillated between USD 1350 and USD 1420 over the past two weeks, has masked the continued exit of investors from the gold futures market. The number of open gold futures contracts has slumped 17 percent from 453,048 on May 20 to 375,206 on May 31. This is thelowest number of open gold contracts since August 2009, when gold prices were trading at less than USD 1,000 an ounce.

Energy U.S. crude futures rose Monday as encouraging manufacturing data out of Europe helped raise hopes of higher energy demand. Light, sweet crude for July delivery recently traded 49 cents, or 0.5 percent, higher at USD 92.46 a barrel on  the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 97 cents higher at USD 101.36 a barrel. Oil prices rebounded from early losses after the euro zone's manufacturing purchasing managers' index rose to 48.3 in May from April's 46.7.

Metals LME Copper Ends Higher Despite Poor US Data; Nickel Leads Gains By Francesca Freeman Copper closed higher on the London Metal Exchange Monday, as investors shrugged off some disappointing U.S. economic data in the face of further supply disruptions at a major Indonesian copper mine. At the PM close, LME three-month-copper was up 0.4 percent at USD 7,339 a metric ton.

Copper prices found support Monday amid supply fears following news that Indonesia's chief mine inspector has ordered a new halt in operations at Freeport Indonesia's Grasberg mine following a fatal tunnel collapse last month. Freeport's Indonesian operations accounted for about 2 percent of global copper mine output last year.

Also Read:Gold imports only for actual usage, not trading: Sharma

MCX Gold Aug futures contract trend is looking strong on chart, day traders can buy on dips Major support is seen in range of Rs 27180, Rs 27020 and Rs 26820. While important resistance is seen near Rs 27450, Rs 27650 and Rs 27880. Recommendation - Day traders can Buy at Rs 27180 Target  Rs 27350 & Rs 27450 SL below Rs 27060.

MCX Silver July futures contract is looking weak on chart, day traders can sell on rise Major support is seen in range of Rs 43900, Rs 43500 and Rs 42900. While important resistance is seen near Rs 44700,  Rs 45200 and Rs 45700 Recommendation - Day traders can buy at Rs 43900 Target Rs 44400 & Rs 44700 SL below Rs 43500.

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