Gold outlook: Expected to trade negative

Updated: Aug 21 2014, 21:46pm hrs
Gold price held below $1300 an ounce on Wednesday after a three-day losing streak, on strong U.S. housing data supported rise in stock markets and dimmed bullion's appeal as a safe haven.

Geopolitical tensions continued to support gold by keeping losses in check.

SPDR Gold Trust, the world's largest Gold-backed exchange-traded fund, said its holdings rose 1.5 tonnes to 799.19 tonnes on Tuesday.

For next week, we can expect COMEX Gold October Futures prices to trade on negative note as Federal Reserve can cut its asset purchases for a sixth time,after strong U.S. Data.

Technically COMEX Gold, if it sustains above the level of $1280, then it can test the levels of $1260 and $1240 on the downside.

If MCX Gold October futures sustains below 28000, then downside movement can be seen till the levels of 27800 and 27600.

By Vivek Gupta (Director Research, CapitalVia Global Research Ltd)