Published on: December 5, 2023
The Gold prices on the MCX Futures December series experienced a significant correction of 1,700 points from their recent high of Rs. 63,881/10gms. The volatility has prompted speculation about the future trajectory of gold prices.
As the December series approaches expiration, attention shifts to the active contract for February 2024, which has also been corrected by ~1,700 points. This correction is noteworthy, bringing the price down to Rs. 62,171/10 grams in December series.
What’s Next for Gold Prices?
A closer look at the continuous chart of MCX Gold reveals a significant technical breakout at Rs. 61,800. This breakout is highlighted by a horizontal trendline on the chart, suggesting a potential shift in market dynamics.
Additionally, there is a rising trendline signaling a support area around Rs. 61,600. This level may act as a demand zone, providing a key reference point for traders and investors navigating the gold market.
Shifting our focus to the global market, on COMEX, gold prices have breached the $2,000/oz mark. This breach indicates a breakout from a bullish or inverted head and shoulders pattern at $2,008.
The $2,000 level holds significance as a psychological support level and a potential retest of the breakout from the reversal pattern. Understanding these global dynamics is essential for a comprehensive view of gold’s performance.
Considering the long-term breakout on the chart, investors may consider exploring the Gold Bees ETF available on the Definedge Securities trading terminals. This exchange-traded fund provides a convenient avenue for investment from a long-term perspective. As the gold market may remain volatile, the technical breakouts signal a strategic investment approach for those looking to capitalize on potential opportunities.