COMMODITIES OUTLOOK IN GOLD by Nirmal Bang

COMMODITIES OUTLOOK IN GOLD by Nirmal BangGold prices have spiked up sharply in the last week closing up 4% from its previous week's closing. Looking at the weekly chart the counter has given bullish symmetrical triangular breakout by breaching a resistance of $975/oz. We expect bull trend to follow in gold in the near term.

After a long consolidation between $930/oz and $971/oz for last 6 weeks, the counter has finally breached the $975/oz resistance and closed above $990/oz.

Prices are in positive momentum as long as holds above $942/oz {S1}. Positive breakout in RSI with downside support of the trend-line is indicating near term bullish sentiment in the counter. Positive crossed over in +DI and -DI indicate the near term bullish momentum in the counter.

First area of resistance is $1007/oz; if the counter closes above $1007/oz on weekly basis we can expect the prices to hit the immediate target of $1032/oz. Prices are trading above 21DMA on weekly basis, which is another positive indicator for Gold. If the counter closes above $1007/oz.

We can expect the immediate target of $1032/oz. We are expecting the counter to test $1050/oz to $1070/oz in the near term. We recommend buy on dips between $970/oz
- $980/oz for the target of $1050/oz and $1070/oz in the near term.